2015 (1) TMI 1022

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..... have heard Mr.Bhatt, learned counsel appearing for the appellant. 2. The Revenue has preferred present appeal on the following substantial questions of law formulated at para 2(A) and (B), which read as under:- "2(A). Whether the Appellate Tribunal has substantially erred in deleting the addition made on account of GP on unaccounted production in absence of clear cut justification from assessee .....

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..... he view taken by the A.O. on the ground that the books of account were not verifiable with the details submitted. The mater was further carried in appeal before the Tribunal by the Assessee and the Tribunal, at paragraph Nos.16 to 23, observed thus:- "16. We find that it is an established position of law that the result disclosed by the regularly maintained books of account cannot be rejected unl .....

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..... n record to show that the method of accounting employed by the assessee was not a regular or consistent method or a method from which the correct profit of the assessee could not be deduced. 21. Further, apart from the breakage, no other expenses entered in the books of account were found to be not supported by the proper vouchers or were not verifiable. 22. Further, in our considered opinion, dis .....

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..... nstant case for rejecting the book results was inability of the assessee to properly explain the reason for decline in gross profit for disproportionate increase in expenses in three heads. In our opinion, the above reason could at best present a case where the Assessing Officer ought to have verified the books with caution and make due inquiries but does not empower the Assessing Officer to rejec .....

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..... scrutiny in the present appeal where, the judicial scrutiny would be limited to substantial question of law. Whether books of account could be discarded or not, considering the facts and circumstances, essentially, it is a question of fact and not the question of law. 6. Under the circumstances, we find that no substantial question of law would arise for consideration in the present appeal, as so .....

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