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2012 (7) TMI 438 - ITAT, DELHIWhether CIT erred on facts and in law in upholding the trading addition and upholding the action of the Assessing Officer in rejecting the books of accounts and holding that the appellant failed to furnish item-wise trading results – Held that:- Assessee is in timber trading activity. The activity involves purchase / import of raw timber, which is thereafter sawed and sold in wholesale / retail basis - assessee’s submission that it is not practically feasible to maintain item-wise stock record of each and every type of timber - there is no allegation by the AO that there has been any pilferage or sale outside the books of account - no case of suppression of sales - assessee’s books of accounts were duly audited, which signifies that books of accounts and method of accountancy are in order - mere fall in G.P. and absence of stock register cannot be a reason to reject the books of accounts - there were no cogent reasons for rejection of the assessee’s books, and estimation of GP rate - details sought by the AO were not practically feasible to be maintained - In favour of the assessee.
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