2013 (7) TMI 810

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....i. Whether, the books of accounts of the appellant could be rejected in absence of any finding recorded or reasons given for lack of satisfaction of the correctness or completeness of the accounts? ii. Whether, the completeness or correctness of the books of accounts of the appellant has been doubted and disbelieved on extraneous considerations, purely on the basis of presumption and conjectures? iii. Whether, business of the appellant is being same and, the books of accounts of the appellant having been maintained similarly, the Tribunal could reject the books of accounts of the appellant for A Y 2004-05/ 2005-06 when the same Tribunal had similarly accepted the books of accounts of the appellant for A Y 2003-04?" We have heard Sh....

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....ng additions in the gross profit at 16.75% and by which he has added Rs.18,97,371/- as per Item No.3 in the discussion made by him. The CIT (A) and the Tribunal have not considered these aspects of the matter. He has relied upon Laxmi Stores v. Commissioner of Sales Tax, U.P., 1979 (43) STC 167 in which it was held that the low profit without there being any defect in account books is not sufficient ground for rejection of books of accounts. We have examined the order of the A.O. and find that it was not on the low profit alone that he rejected the books of account. He has given reasons for rejection of the books of account of which first five reasons are relevant and are quoted as follows:- "1. The Raw material used is KATEE which is....