1977 (2) TMI 56

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....sst. yr. 1975-76. The assessee is a dealer in handloom goods. In the assessment year under consideration, the assessee had shown a turnover of Rs. 11,21,008 on which the gross profit shown was 11per cent. The ITO considered this profit was lower as compared to the immediately preceding year when the gross profit shown was 13.2 per cent. He went into the accounts and stated that the assessee had go....

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.... February. This it was submitted, was during the festival season and the assessee was having a quick turnover and purchases were recorded as and when the sales were made. It was contended that such position prevailed in earlier years also. The assessee further submitted that the 'Chittai' was the primary record for purchases and the 'Chittai' had been accepted by the Department in earlier years. I....

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....that due to a slump in the trade conditions there was a fall in the gross profit by about 11.1 per cent. It was submitted by the learned counsel for the assessee that all purchases and sales were recorded in the accounts. Excess sales noticed were only in the period 28th Dec., 1974 and 14th Jan.,1976, i.e., the "Pongal" season, when there was a large turnover and immediately the goods were sold, t....

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....in the fortnight preceding Pongal. After the 14th Jan., there is no such case of excess. There is, in any event, no material to show that the assessee had left out to account any transaction. In these circumstances, the plea that due to a very quick turnover in that fortnight, purchases were recorded immediately on the sale being made as the weavers were bringing the cloth for ready sale is not im....