1975 (11) TMI 74

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.... business in grocery and there allied articles as a retailer at Karanja Adia in the district of Balasore. For the first three quarters of 1969-70 he maintains sale accounts and thereafter he has switched over to purchase account. While furnishing figures in respect of purchases, he has added no profit. In view of that the AO rejected his accounts and added 25 per cent to the purchase figures as profit as the inspection on 9th March, 1972 revealed that the local purchases are not vouched. On such estimation, he issued addition demand note for each of the years and the additional edmand for 1969-70 is Rs. 530.88, for 1971-72 Rs. 1001.88 and for 1971-72 is Rs. 352.36. 3. Being aggrieved by these orders, the appellant filed three appeals bef....

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....margin of 15 per cent are considered reasonable." With theses remarks, he dismissed the appeals and hence the second appeals. 4. The learned counsel appearing for the appellant firstly contended that the appellant's accounts for 1969-70, 70-71 and 71-72 are now for consideration. The inspection was made on 9th March, 1973 which is after the close of the accounts of the year 1971-72. Hence the materials found in the inspection cannot be utilised to reject his accounts. He secondly urged as there are no material to reject the purchase accounts, the addition of 25 per cent to the admitted purchase figures is illegal and it should be annulled. He lastly urged the adoption of 15 per cent profit is also heavy and it should be annulled. 5....