ITAT overturns book rejection under section 145(3) for construction business citing practical difficulties in stock maintenance

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....ITAT allowed the assessee's appeal against rejection of books of accounts under section 145(3). The AO rejected books citing non-maintenance of stock register and lower gross profit rate compared to previous years. ITAT held that for construction businesses involving infrastructure projects like roads, bridges, and tunnels, maintaining daily stock registers of raw materials (bricks, stones, sand) across multiple project locations is practically difficult. The assessee's audited books showed no defects, with receipts primarily from government authorities through banking channels with proper TDS deductions. ITAT ruled that merely showing lower GP rate without evidence of inflated costs, out-of-books sales, or suppressed income cannot justify .........