1986 (8) TMI 146

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.... but also the price of empty bottles which the customers did not return. However, the assessee was unable to give the details of day to day breakage or stock of empty bottles. According to the ITO the expenses on breakage were not available for verification. The amount of breakage was only Rs. 11,406 in the year 1980-81, Rs. 1,15,423 in the year 1981-82 but this year it was absolutely high. He, therefore, made an addition of Rs. 1,40,000 on this ground. The same has been reduced to Rs. 1 lac by the CIT(A). The assessee, however, is still dissatisfied and has challenged this in its first ground of appeal before us. 2. After carefully considering all the facts and circumstances of the case, we are not inclined to uphold this addition. The ....

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....e after taking into consideration the price of the bottles paid came to Rs. 9,23,831 which came to about 4.5. per cent. This year the total sales of the assessee were Rs. 2,30,08,686. The gross profit disclosed was Rs. 12,95,278. From this at best we can deduct the total cost of breakage claimed by the assessee at Rs. 2,62,127. The gross profit would then come down to Rs. 10,33,151. This comes to about 4.5 per cent. Therefore, the all over results shown by the assessee this year not worse than the last year, even if we hold that the addition of Rs. 8,000 on account of excessive breakage was rightly made by the ITO even though the assessee's representative argued that he did not come up in second appeal before the Tribunal because the amount....

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....Basa expenses. These have been maintained by the CIT(A) keeping in view the past history of the case and no interference is called for. 6. Another ground relates to disallowance of Rs. 2,500 out of telephone expenses. This has been confirmed by the CIT(A) again keeping in view the past history of the case and no interference is called for. 7. The last ground relates to charge of interest on over withdrawal by the partners. The ITO noticed that all the partners had over-withdrawals from their capital and at the end of the accounting year all the partners had debit balance in the capital account. He also found that the firm had paid interest on amounts over drawn by the partners at Rs. 78,009. He worked out the interest on the over-draw....