2015 (1) TMI 1022

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....ourable Mr. Justice Jayant Patel) 1. We have heard Mr.Bhatt, learned counsel appearing for the appellant. 2. The Revenue has preferred present appeal on the following substantial questions of law formulated at para 2(A) and (B), which read as under:- "2(A). Whether the Appellate Tribunal has substantially erred in deleting the addition made on account of GP on unaccounted production in ab....

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.....T.(Appeals). The C.I.T.(Appeals) concurred with the view taken by the A.O. on the ground that the books of account were not verifiable with the details submitted. The mater was further carried in appeal before the Tribunal by the Assessee and the Tribunal, at paragraph Nos.16 to 23, observed thus:- "16. We find that it is an established position of law that the result disclosed by the regularl....

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....s of account. 20. Further, no material was brought on record to show that the method of accounting employed by the assessee was not a regular or consistent method or a method from which the correct profit of the assessee could not be deduced. 21. Further, apart from the breakage, no other expenses entered in the books of account were found to be not supported by the proper vouchers or were not ver....

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....d. The reasons given by the lower authorities in the instant case for rejecting the book results was inability of the assessee to properly explain the reason for decline in gross profit for disproportionate increase in expenses in three heads. In our opinion, the above reason could at best present a case where the Assessing Officer ought to have verified the books with caution and make due inquiri....