TMI Blog1999 (10) TMI 106X X X X Extracts X X X X X X X X Extracts X X X X ..... ssessee has set forth as many as 4 grounds, but in effect they are against the deletion of Rs. 92,418 from trading a/c having accepted fresh evidence in violation of r. 46A of the IT Rules. The assessee is a registered firm. It is engaged in reclamation of used lubricant oil. For the assessment year under consideration it filed its return of income on 27th Oct., 1993, disclosing total income of Rs ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... bricants drastically fell due to enhanced usage of lubricant by the customers themselves. It was added that the plant got old and the condensing unit did not work efficiently as used to work in the beginning. It was also said that the oil filter placed in the machine also could not extract full oil from spent fallen earth. However, those explanation did not find favour with the AO. He noted that t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n stock register. The learned CIT(A) found that stock register was duly produced before the AO which was not a new evidence. The learned CIT(A) further noted that except some doubt about the payment for purchase the AO did not find any specific defect. According to the learned CIT(A) defect pointed out by the AO were not such that no profit could be determined or deduced. According to him the AO r ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t the assessee has maintained proper books of account which have been duly audited and the auditors have not pointed out any defect. No doubt, the AO has pointed out that some of the payments were not on proper vouchers. But he has not doubted the genuineness of the payments. The genuineness of the internal vouchers cannot lightly be disbelived. To disbelieve the internal voucher the Revenue has t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ,418 is unjustified. It is to be noted that mere fall in g.p. will not necessarily usher for addition on ad hoc basis by rejecting the books of account. It is to be reiterated that the learned CIT(A) has found that the assessee has maintained proper books of account in regular course of business which have been duly audited and there is no defect. So regard being had the entire facts and circumsta ..... X X X X Extracts X X X X X X X X Extracts X X X X
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