1964 (7) TMI 44

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....skins as unsuitable for sale. It is common ground that these snake skins find a market only abroad. The assessee claimed that, after he had tanned his skins, he found certain of the skins were not up to the standard. He therefore rejected them. The Income-tax Officer thought that the rejections were excessive. These rejections have been variously described in the orders of the officers below as shortages or wastages. But it is not denied by the department at this stage that they represent rejections of unsaleable skins which were found to be not up to the standard. It is also not in dispute that, in spite of these rejections, the assessee's gross profit return was not low and, indeed, compared favourably with the returns of similar deal....

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....years 1950-51, 1951-52 and 1952-53?" In so far as the assessment year 1952-53 is concerned, the sum of Rs. 28,000 added covers two items: Rs. 18,000 relevant to the rejections and Rs. 10,000 as due to inflated figures furnished by the assessee in the cost of tanning. Mr. Abdul Karim, learned counsel for the assessee, does not object to this addition of Rs. 10,000 but confines himself only to the additions made on the head of rejections. Once again we may emphasise that Mr. Balasubramaniam, learned counsel for the department, does not dispute the contention of the assessee that his gross profit margin is, in fact, somewhat higher than that shown by other dealers similarly placed. Nor does he dispute the proposition that the comparable ....