TaxTMI 
TaxTMI 
1988 (7) TMI 118
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....er cent (gross profit rate) and 17 per cent (shortage in grinding) in the immediate proceeding year. The contention of the assessee was that the trading results are supported by quantitative details, as the full information are kept in the requisite registers required to be maintained, as required by the Mining Department, which have been so examined by them also. The ITO was of the view that the assessee should have maintained full particulars of quantity escavated each labour-wise, which the assessee had submitted was not possible to maintain. The assessee submitted that the quantity escavated, quantity grinded and powder received and the waste, i.e., each process-wise having been maintained, they are sufficient enough to support the trad....
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.... while in the immediate preceding year such expenses were claimed. However, he found that mines expenses of Rs. 8,831 were charged from Profit & Loss Account and according to him, the expenses representing also of removal of debris from mines for which no records were maintained and that there was no similar claim in the earlier years. Keeping all this in mind and also the fact that though the assessee had shown a gross profit rate of 34.6 per cent in the year as compared to 40.3 per cent from which according to him, the royalty expenses and the mines expenses, if debited, would result in the gross profit rate to fall by 1.5 per cent. According to him, in view of his observations about lack of quantitative details, as per his views, the cla....
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...., in view of the detailed order of the ITO, wherein he had made strenuous effort to establish and bring about the non-reliable nature of the transactions and the books, the addition should not have been deleted. The assessee's representative Mr. Ranka provided copies of the quantitative details as were submitted before the authorities below and submitted that stage by stage movement of the goods in various processes have been provided for and the results being much better and the shortages being of a lower percentages, the CIT(A) was justified in deleting the trading addition. 5. We have given our very careful considerations to the arguments advanced by the parties as well as the various materials on record. The learned Departmental repr....
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....ained in the light of full quantitative information being available on record with which no defect or irregularity have been found by the Department. In view of the above we do not find any infirmity in the order of the CIT(A) and we have only to confirm his order and dismiss the appeal of the Revenue. 6. The cross objection of the assessee is only in support of the CIT(A) and is also in relation to the claim of investment allowance of Rs. 2332, interest to Golecha Farm Rs. 5500 and interest to partner Rs. 3300. In regard to the investment allowance, the plea of the counsel for the assessee was that it was not proper for the authorities below to have restricted the claim of investment allowance on the cost of machinery to Rs. 16,000 inst....