1977 (3) TMI 57

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....he Appellate Assistant Commissioner erred in sustaining an addition of Rs. 10,000 on account of low gross profit. 2. The assessee is a registered firm carrying on wholesale business in art silk and mill made cloth. On a total turnover of Rs. 14,09,936 the gross profit disclosed was Rs. 84,650 which worked out only to 6 per cent. The Income-tax Officer held that the result disclosed were low whe....

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.... to Rs. 10,00,000 in the immediately preceding year. Besides this, it was also explained that the opening stock was Rs. 77,000 and this by itself would indicate that there was quick turnover during the year of account which resulted in lower rate of gross profit. Taking these aspects into account, it was submitted that the book results disclosed by the assessee should have been accepted. 4. The....