1992 (7) TMI 126

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....rds, the assessee never produced the books of account nor filed the capital account or balance sheet. However, in this year the assessee showed the opening stock of Rs. 2,01,804, purchases at Rs. 1,95,310 and the sales were shown at Rs. 2,28,350. The closing stock was worked out at Rs. 2,06,425. Certain other lists of credit sales and the liabilities were also filed. The assessee submitted the rou....

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.... filed the photostat copy of the dissolution deed, according to which, the assessee was given the entire stock of Satna shop and Rewa shop. The sales tax orders were also produced. The CIT(A) after going through the evidence held that for various years, the closing stock and the opening stock cannot be totally discarded. The closing stock was shown at Rs. 2,01,804 in the asst. yr. 1977-78. On the ....

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....e CIT(A). 5. We are of the opinion that the CIT(A) was justified in deleting the addition though we do not approve the assessee's action of not producing the account books before the lower authorities. Still, there is no doubt that there was some stock at the end of every year. The dissolution deed is also a relevant piece of evidence in the absence of any material before the Assessing Officer.....

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.... of Rs. 2,28,000 the assessee had shown the gross profit of Rs. 37,662. After adjusting the sales tax, the Assessing Officer found that the G.P. shown, in fact, was Rs. 25,018 only. He found that in earlier year, the AAC has confirmed the rate of 12.5% in cycle and 17.5% in cycle parts. He, therefore, estimated the sales at Rs. 2,35,000 and applied the rate of 15%. When the matter was taken to the....