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2021 (7) TMI 129 - AT - Income TaxRejection of books of accounts u/s 145(3) and applying GP @ 1.66% - HELD THAT:- Where the books of accounts are rejected by the AO, the AO is to assess the income of the assessee on the basis of best judgment and average of past years GP rate which has attained finality has been considered as proper and reasonable basis and guidance for the best judgment. In the instant case, the AO has adopted G.P rate of immediately preceding year as compared to average of past GP rates. The assessee has submitted that average of past three years GP rate comes to 1.44% as compared to current year rate of 1.52%. We therefore, find that the assessee has declared better gross profit rate of 1.52% as compared to average of past three years GP rate of 1.44% and even where the books of accounts are rejected, there is no basis for making the addition in the hands of the assessee. Therefore, leaving the question of rejection of books of accounts open as the same has become more academic in nature, the addition so made is directed to be deleted. Depreciation and other expenses relating to tanker on perusal of explanation and documentation - HELD THAT:- We find that there is no merit in disallowance of the said expenses and the same are directed to be deleted.
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