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2010 (2) TMI 953 - AT - Income TaxRejection of books of account - turnover and net profit rate had increased substantially while the gross profit declined marginally - Assessing Officer rejected the book results and made estimated addition since the assessee was not maintaining day-to-day consumption records, even when no defects were noticed in the books of account maintained by the assessee – Held that:- Calculations made by the Assessing Officer were wrong because though the Assessing Officer reduced the receipt from sister-concern, he did not reduce the corresponding cost nor considered the effect of opening and closing stock of work-in-progress and raw material - there is no material on record for estimating the production nor there is any material to show that the assessee sold any production outside the books of account - there was no ground for rejecting the book results and making any trading addition - no specific discrepancies or defects in the books of account of the assessee have been pointed out nor was any material brought to notice to establish that purchases or expenses were inflated or receipts suppressed, there was no justification in invoking the provisions of section 145 of the Act - appeal of the revenue is dismissed
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