1979 (5) TMI 44

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....AC. There are two identical grounds for each of these two years. These two appeals are disposed of by a common order. 2. The assessee is a registered firm. The main business of the assessee is dealing in umbrella. Besides, he is also a dealer in woollen cloth, hosiery, etc. The main points of dispute for both these years are the estimate of gross profit and disallowance in shop expenses. 3. ....

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....of profit is higher. The assessee failed to bifurcate the sales of umbrella and other items separately. The failure on the part of the assessee to bifurcate the trading account, according to the ITO was advantageous to the assessee. After pointing out these defects, the ITO rejected the trading accounts under s. 145(1). At the time of hearing, we have found that the assessee is not a manufacturer ....

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....to 14 per cent i.e. an increase of 0.5 per cent without pointing out any defects. We do not think it fair to reject the book result of the assessee by the ITO. In view of this fact, the G.P. shown by the assessee should be accepted by the ITO for the asst. yr. 1973-74 the assessee had disclosed a G.P. of 12.5 per cent on a total turnover of Rs.12,53,524 as against the turnover of Rs. 10,34,613. Th....