1995 (6) TMI 76

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....ve shortage in cloth. 2. Heard the parties. 3. The assessee purchases yarn and gets gray cloth prepared through M/s Rajasthan Processors (I) Ltd. At the assessment proceedings, the AO noted that the assessee had claimed shrinkage at 5.25% as against shrinkage of 3.91% in last year. On being asked to explain the increase in shrinkage percentage this year, it was explained that the variation in pe....

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.... reasons for deleting the addition made. Apart from that, the learned counsel for the assessee has advanced very learned arguments, with which we feel completely satisfied. 6. The learned counsel for the assessee is very right in his contention that the provisions of s. 145 cannot be made applicable until and unless the AO brings a case within the purview of either s. 145(1) or 145(2). In the pre....