9911796707
TMI Blog1983 (11) TMI 150X X X X Extracts X X X X X X X X Extracts X X X X ..... 7. At the assessment stage, although the assessee filed two returns of income relating to two periods involved viz. Diwali, 1976 to 18th March, 1977 and from 18th March, 1977 to Diwali, a single assessment was framed for both the periods and it was upheld by the ld. CIT(A). The stand of the assessee was that the earlier firm was dissolved on 18th March, 1977 and a single firm came into being on 19 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... bad High Court has not been approved. 2. We have heard the ld. counsel for the assessee as also the ld. Senior departmental representative at length. Shri B.K. Nema, the ld. counsel for the assessee, while taking us through the facts of the case has also taken us through the terms of the deed of dissolution dt. 18th March, 1977 as also through the terms of agreement of partnership. The facts of t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... o as above. 3. The next issue involved is the addition of Rs. 10,000 since sustained by the ld. CIT(A) by the ld. CIT (A) out of an addition of Rs. 42,428 since made by the ITO at assessment stage. The ITO applied G.P. rate of 20% on estimated sales for the first period ass also the same thing happened in relation to the second period. Primarily for the reason that both the periods are to be in t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the assessee as also the stand that the results declared by the assessee merit to be accepted. Following the said order of the ITAT we do hold that even on merits, the addition in the trading results was not justified. The trading results declared by the assessee for both the periods merit to be accepted. We hold accordingly.
4. The net result is that the appeal succeed and stands allowed. X X X X Extracts X X X X X X X X Extracts X X X X
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