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2019 (1) TMI 46 - AT - Income TaxRevision u/s 263 - Estimation of gross profit - Held that:- There is no case for the Revenue that assessee failed to produce its books of accounts or the evidence in support of such books of accounts during the course of assessment proceedings. It is to be noted that original by the assessment was completed u/s. 143(3) on 30.09.2012 accepting the returned income. Impugned assessment was in a second round of proceedings pursuant an order under Section 263 of the Act. In both the rounds, AO could not point out any defect in the books of accounts. Just for a reason that gross profit was lower, in our opinion an addition could not have been made. No doubt as held in the case of Goodyear India Ltd [2000 (7) TMI 32 - DELHI HIGH COURT], it is not necessary to accept the books just because an audit u/s.44AB of the Act was conducted. Here the question is not audit conducted u/s.44AB of the Act, the question is whether there were any defects in the books of accounts. AO was unable to find any deficiency in the books produced by the assessee. That apart, we also find that assessee had given a reasonable explanation for the lower gross profit shown by it during the relevant previous year - addition for lower gross profit was not warranted. In our opinion, CIT (Appeals) was justified in deleting such addition - decided against revenue
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