1980 (12) TMI 94

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.... of Rs. 9,916 in the cloth account of the branch situated at Pachor. 2. The assessee carries on business in cloth During the asst. yr. 1975-76 relevant to the accounting period ending Diwali, 1974 it had a branch at Pachor where business in cloth on semi whole sale basis as well as on retail basis was carried on by the assessee This was the second year of the business of this branch The assesse....

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....Pachor was conducted both on semi whole sale basis as well as on retail basis and that the goods sold here were mainly coarse cloth it was also submitted tha in order to push up its sales and due to keen competition from other dealers, the assessee had to decrease its margin of profit In this connection, it was pointed out that the sales during this year increased to Rs. 3,91,862 as against Rs. 85....

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....y attracted in view of the fact that the assessee has not maintained the proper quantitative details or stock register. At the same time, the GP rate of 10 per cent applied in this case considering the tremendous increase in the turnover, as compared to the earlier year is rather on the higher side. It is true that in the first year of business relating to the asst. yr. 1974-75 an adhoc addition o....