1980 (2) TMI 162

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....in view of the low gross profit shown by the assessee and because of non-maintenance of stock registers. 2. The assessee, a partnership firm, was a dealer in electrical goods at Madurai. It deals both on wholesale and retail basis. The assessee showed a gross profit rate of 5.7 per cent. The ITO found that the assessee had not maintained any day to day stock account and the gross profit shown of ....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....hed and all the sales are property billed. He had made acquisition attempt to have a day to day stock in respect of fans and in respect of other electrical goods the items being large no such stock account could beneficiary prepared. On the other hands the departmental representative pointed out that as no day to day stock book was maintained there is every possibility of the accounts being not pe....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....nsel for the assessee that the ITO had not brought such instances to the knowledge of the assessee. On the other hand the learned counsel points out that he had shown similar dealers getting only a lesser gross profit of only 5 per cent. Gross profit in a trade depends upon may factors. When all the purchases and sales are property vouched there is no need to disbelieve the books of accounts. In a....