TaxTMI 
TaxTMI 
TaxTMI 
1992 (10) TMI 117
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....resaid addition on the basis of the following facts: (i) That the assessee had purchased Mentha oil from agriculturists only, but no vouchers in respect of such purchases had been produced; (ii) The assessee did not maintain any register with regard to the quantity of Mentha grass received for distillation and from which Mentha oil was extracted; (iii) That in respect of sale of Mentha oil the assessee had produced bill book which was marked as "duplicate". On verification of some of the bills in the aforesaid duplicate bill book in the bill issued to one Shri Mahfooz Hussain there was a difference in the serial number as also in the description of goods; (iv) The explanation of the assessee that the original bill book had been lost and....
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....ross profit rate it was contended that the rate of 6.44 per cent was reasonable in view of the decline in the sale price and attention was also invited to the fact that in the immediately succeeding assessment year the G.P. rate was only 2.3 per cent which was accepted by the first appellate authority. The assessee's counsel also took exception to the estimate of sales at Rs. 20,00,000 and attention was invited to the fact that the ITO had not pointed out any "unrecorded sales" whereas the assessee had given complete details of the sales effected by it, on the further ground that the ITO himself had accepted that there was a fluctuation in the selling rate the submission on the part of the assessee was that the rate of 9.6 per cent applied ....
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....ion it could not be said that any transactions had been effected out side the books of accounts as alleged by the ITO; (v) There was no finding on the part of the tax authorities to the effect that sales had been suppressed or purchases had been inflated and nor was there any other adverse comment about other items debited in the trading account; (vi) That the assessee had not purchased grass from agriculturists but what had been purchased was Mentha oil which was extracted by the farmers from the said grass. (vii) That purchases had been effected from small farmers/agriculturists who did not maintain any records; but the assessee, on the other hand, was keeping complete details of the purchases made in its purchase register; (viii) Tha....
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.... counsel for the assessee as also the decisions cited at the bar have also been duly considered. At the outset, we may mention that the G.P. rate cannot remain static and is likely to vary from year to year depending on the facts and circumstances prevailing. In the very case before us the G.P. rate in the preceding assessment year was 12.75 per cent, which we were informed, was accepted by the Department and in the subsequent assessment year, viz., 1980-81 a G.P. rate of 2.3 per cent came to be accepted as a result of the order passed by the AAC and inasmuch as no further appeal was filed to the Tribunal by the Revenue as stated by the learned counsel the said order has become final. Then again we find that the assessee is maintaining regu....
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....n being based purely on surmises and conjectures without any positive or cogent material being brought on record on the part of the Revenue to prove the fallacy of the arguments advanced on behalf of the assessee we find no good ground to sustain the addition on the facts and circumstances of the case. The same is hereby deleted. 10. In respect of the second issue pertaining to purchase tax of Rs. 13,535 the ITO took note of the fact that the amount pertained to the month of July, 1977 which fell in the preceding assessment year whereas the assessee who was maintaining accounts on the mercantile basis and claimed the same as a deduction in the previous year beginning August, 1977 to July, 1978 the assessment year involved being 1979-80. He....