TMI Blog1995 (2) TMI 136X X X X Extracts X X X X X X X X Extracts X X X X ..... contract. This is the first year of assessment. The assessee has 27 retail outlets. Admittedly, the assessee has maintained account books consisting of rokar, khata, sales vouchers, stock register, purchase register, day-to-day stock register for 27 shops having details of receipt and issue and the balance at the end of the day, salary register and attendance register. All these were examined by the Assessing Officer. The G.P. rate disclosed on total sales of Rs. 5,91,65,115 is 5.7% which, in the opinion of the Assessing Officer, appeared to be low. On seeking explanation from the assessee, the Assessing Officer was shown that in comparable cases the G.P. rate covered around the rate disclosed by the assessee and, hence, was reasonable. 4 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... al on record. 10. We uphold the relief of Rs. 15,000 given by the learned CIT(A) and also direct that the addition sustained by him amounting to Rs. 25,000 be deleted for the reasons mentioned in the paras to follow: (i) Firstly, the Assessing Officer has given contradictory version as regards the verifiability of sales. At one place he mentions that he has examined the sales vouchers and at the other, he mentions that the sales are "entirely" unverifiable. (ii) Secondly, the assessee has submitted evidence of comparable cases to substantiate the G.P. rate disclosed by its books whereas the Assessing Officer has not come up with any comparable cases to show that the G.P. rate shown by the assessee is low. (iii) Thirdly, the Assessin ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the personal use." The assessee claimed Rs. 1,34,402 on account of jeep repair expenses. The Assessing Officer disallowed a sum of Rs. 23,000 out of it on grounds of the expenses being unvouched to some extent and possibility of personal use. 12. The learned CIT(A) considering the disallowance to be excessive, restricted it to Rs. 10,000. 13. The assessee maintains two jeeps and one Matador. It was submitted on behalf of the assessee that all the vehicles have been used exclusively for the purpose of business only. The learned Departmental Representative on the other hand contended that the learned CIT(A) should not have given any relief on this account. 14. It is observed that since the assessee has 27 retail outlets, the running ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... enses." The total office expenses claimed are Rs. 78,593. The assessee submitted details of all expenses exceeding Rs. 100. The Assessing Officer disallowed a sum of Rs. 9,000 on grounds of the same being unverifiable and because some expenses pertained to sweets, tea, pan, cigarettes, etc. 16. We find no justification at all the sustain any addition whatsoever on the account. As a matter of fact, it is ridiculous to expect that a business has to be run without such expenses and also to expect vouchers for such expenses. The entire addition is, therefore, directed to be deleted. 17. This ground of the Department is, therefore, rejected and the corresponding cross-objection of the assessee is allowed. 18. The fourth ground is as fo ..... X X X X Extracts X X X X X X X X Extracts X X X X
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