1979 (12) TMI 87

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....overnment contracts of road construction. During the accounting year relevant to the asst. yr. 1975-76 the assessee had undertaken 4 contract works and the gross receipts were shown at Rs. 5,86,203. The ITO has mentioned in the assessment order that the account books are subject to audit but that the quantitative details were not available and that there was no check on the materials consumed duri....

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....oticed that the assessee has it members like the Executive engineer of Building and Communications Department, Thane, the Industrial Inspector, the Sub-Registrar of Thane and others. For all these reasons, he directed the ITO to accept the accounts and allowed the appeal. 3. It was argued before us by the Deptl. Rep. that the assessee did not maintain the account books properly and that there w....

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....ion work should not be saddled with any unwarranted tax liability. 5. We have considered the rival contentions advanced by both the sides and are inclined to agree with the submissions made by the assessee. It may be that the stock-register was not available. But on that account alone trading additions cannot be sustained. There is no finding given by the ITO that the trading results shown by t....

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....s of the proposed addition before finally making it and in not bringing comparable cases on record. 1. Y.V.M. Somaraju & Co. vs. CIT(1), 2. S.S. Setty & Sons vs. CIT(2), 3. Kmoyammankutty vs. ITO(3), 4. P. Subbaraidu & Co. vs. CIT(4). We may further notice that the ITO had not brought any material on record reflecting the trading conditions existing during the relevant accounting ye....