1995 (2) TMI 100

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.... of Rs. 1,00,000 on account of difference in the value of stock of timber and also on account of low G.P. rate. The Assessing Officer (AO), however, made the addition in respect of the surrendered income and also made addition on account of low G.P. rate. The assessee had shown sales at Rs. 8,10,225 and G.P. at Rs. 1,85,442 giving the G.P. rate at 22.89%. In the preceding assessment year, the assessee had shown a higher G.P. rate of 24.46%. Therefore, the AO applied the G.P. rate of 25% and made an addition of Rs. 17,090. It was noted by the AO that the assessee had not maintained any stock register nor a list of closing stock was furnished. 3. The assessee went in appeal with the plea that in the asst. yr. 1985-86, G.P. rate had been sh....

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....the assessee at 22.89% may be said to be slightly less as compared to the profit rate shown in the immediately preceding assessment year but the rate was definitely higher as compared to the asst. yr. 1985-86 and 1986-87. The past history of the case cannot be totally ignored particularly when no specific defects have been found in the books of accounts. The learned counsel for the assessee has pointed out that it was not possible to keep a day-to-day stock register in view of the nature of the business. The business relating to timber did not permit the assessee to maintain a day-to-day stock register due to practical difficulties. We agree with the learned counsel that mere non-maintenance of a stock register was not sufficient to reject ....

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....amount of Rs. 40,000 was shown to have been withdrawn by the depositor firm from the bank account by cheque and thereafter the money was deposited with the assessee firm through a bank draft. The depositor firm was also said to be a regular assessee under the IT Act. The assessee's plea was accepted in appeal. 9. The learned Departmental Representative has submitted that the genuineness of the transaction had not been properly explained because neither the depositor was produced nor the books of accounts of the depositor. The learned counsel for the assessee has, in reply, contended that the reason for not producing the depositor was a valid reason because the depositor firm did no more exist. Moreover, Arun Kumar, who happened to be a c....