TMI Blog2010 (4) TMI 83X X X X Extracts X X X X X X X X Extracts X X X X ..... stion whether the accounts maintained by the assessee were defective and/or incomplete, or not, was a question of fact. Neither the CIT(A) nor the ITAT found the accounts to be defective or incomplete. Both, CIT(A) as well as the Tribunal were satisfied with the Stock Register maintained by the assessee and appreciated the fact the raw material, i.e., the fabric purchased by the assessee was to be measured in metres, whereas the finished products were to be counted in numbers. No reasonable ground has been made out for this Court to go in to this question and revisit the finding returned by the CIT(A) and the ITAT. - It is not as if the assessee did not give any plausible explanation for the fall in gross profit during year in question. He ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... fit at the estimated rate of 28%, considering that the gross profit declared in the immediate preceding year was 27% and made addition accordingly. 3. The Commissioner of Income Tax(Appeals) noted that the assessee had produced a chart before the Assessing Officer, thereby giving statistical analysis for the purpose of verification by him. He noted that the Assessing Officer had not disputed the veracity of the analysis. It was further noted that the samples of different products were produced for verification and it was demonstrated that in the case of blouse, a particular blouse consumed two metres to four metres of cloth. The blouse manufactured during the year in question was also produced for verification along with other blouses ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... through which in and out stock movement was clearly verifiable. The Tribunal appreciated that when the assessee is in the business of manufacturing and export of clothes, his raw material would have to be in metres, whereas the finished goods would obviously be in number of pieces and cannot be measured in metres. It was further noted that the Assessing Officer, had not pointed out that consumption of raw material and finished goods did not tally with the past record of the assessee. The Tribunal was of the view that maintenance of a stock register on a daily basis in regard to the issue of cloth and quantification of finished goods cannot be said to be defective. The Tribunal found that the income of the assessee was discernible from the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... planation which has been accepted not only by the Commissioner of Income Tax(Appeals) but also by the Tribunal and both of them have given a concurrent finding of fact that maintaining Stock Register of that nature was not feasible, considering the nature of the business being run by the assessee which was engaged in the business of manufacturing readymade garments by purchasing fabric which was then subjected to embroidery, dyeing and finishing and was then converted into readymade garments by stitching. Our attention has not been drawn to any provision of the Act or to Rules framed thereunder, requiring the assessee engaged in the business of manufacturing and export of garments or all assesses in general having business income, to mainta ..... X X X X Extracts X X X X X X X X Extracts X X X X
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