1977 (12) TMI 55

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....n Kapas A/c., Narma R.S. 89 A/c and Narma LSS A/c., (2) Disallowance of Rs. 735 out of Basa expenses and (3) Disallowance of Rs. 821 out of shop expenses. 2. The assessee is a partnership concern having income from food grains, adhat, kapas and narma etc. The assessment concerned is for the year 1975-76. The previous year for this assessment year ended on 13th Nov., 1974. The production c....

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....and were liable to be set aside. It was also stated that shortage in commodities like Kapas and Narma depended upon quality and area but the ITO has made the additions without applying his mind to the relevant factors. It was also stated that normal shortage in these commodities varied from 1.5 per cent to 1.66 per cent. The AAC, however, did not feel satisfied and he sustained the addition made b....

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....ness operations. The learned counsel urged that the shortages shown in the present year were fair and reasonable and should have been accepted. The learned Departmental Representative, on the other hand has supported the orders of the authorities below. 4. We have considered the rival submissions. In Kapas account the shortage had worked out to 1.6 per cent. The authorities below felt that the ....

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.... own history shows that in the earlier assessments shortages have varied from 1.3 per cent to 1.66 per cent. Considering these facts we fell that the shortage shown were reasonable and the addition of Rs. 15,425 made in the trading accounts was uncalled for. Hence we delete it. 5. We take up now items no 2 and 3 together. The assessee had claimed shop expenses of Rs. 4,735 which included Basa e....