1984 (8) TMI 123

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....made by the ITO. 2. The assessee is a registered firm carrying on business of manufacture and sale of crockery & stoneware. The relevant accounting year ended on30th June 1978. The assessee filed return showing net loss of Rs. 51,540 which the firm later revised to loss of Rs. 83,180. ITO determined the total income at Rs. 1,33,880. The main addition was of Rs. 1,92,944 in the trading account. ....

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....970 and in years upto 1979-80 gross profit ranged from 7 per cent to 10 per cent which was accepted by the ITO and, therefore, there was no justification for the ITO applying 25 per cent G.P. in the year under consideration. He further held that the ITO was not justified in rejecting the assessee's claim of loss on sale of claybody though it is true that two purchasers whose affidavits were filed ....

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....note that the assessee firm's business was closed in asst. yr. 1983-84 and in asst. yrs. 1981-82, to 1983-84 gross loss as shown was accepted which was Rs. 1,44 lakhs in asst. yr. 1981-82, Rs. 34,827 in asst. yr. 1982-83 and Rs. 92,246 in asst. yr. 1984-85 and the assessment for 1980-81 which was made ex parte had since been reopened and was pending assessment. Considering all these circumstances ....