1980 (2) TMI 100

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....s justified in sustaining an addition of Rs.16,000 to the trading results of the assessee in respect of the asst. yr. 1975-76 presently under appeal. 2. That provisions of the proviso to sub-s. (1) of s. 145 are applicable to the facts of this case, is not disputed by the ld. counsel for the assessee. He, however, submits that the trading results shown by the assessee were satisfactory and, tha....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....out 2 per cent in the profits. He therefore, conceded to the assessee a decline of 1 per cent in gross profit rate and made the impugned addition of Rs. 16,000 to the declared trading results, which come to about 1 per cent of the sales declared. The ld. AAC on appeal, confirmed the above estimate of the ITO. While doing so he observed as follows: "While making the addition, the ITO has been ju....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....gross profit in increasingly higher turnover. The Department had accepted the assessee's accounts all along. Merely because this year the profits have gone down, there could be no justification to reject the assessee's accounts more particularly when the assessee had given a cogent explanation for the decline in the gross profit rate. The learned counsel for the assessee drew our attention to the ....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....ccounts all along. It is true that the assessments were made under s. 143(1), but nevertheless the fact remain that the trading results of the assessee were accepted by the Department and this year merely because the profits have gone down slightly, rejection of the accounts would not be justified more particularly when the turnover of the assessee has gone up very considerably from about Rs. 9 la....