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TMI Blog2019 (12) TMI 1614X X X X Extracts X X X X X X X X Extracts X X X X ..... cies were noticed in the books of account and deleting the addition of Rs.4,87,61,536/- on account of low GP in manufacturing activity and trading activity as compared to previous years. 3. Since the above grounds relate to nullifying rejection of books of account and deleting the addition on account of GP, the same are being considered together. 4. Brief facts are that the AO noted that there is fall in GP rate in respect of manufacturing activity and trading activity as compared to previous years. Therefore, the assessee was asked to explain the reason for fall in GP, which were furnished by the assessee as reproduced in Para 4.2 of the assessment order. Further, the assessee has made various submissions during the assessment proceeding ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... u/s.133(6) to different parties in respect of which no discrepancy was found by him. The detailed explanations were filed by the assessee during the appellate proceeding which has been reproduced in his order at page 4 to 11. After considering the facts of the case, the ld. CIT(A) has given his finding in Para 5 of the appellate order by holding that the details submitted during the appellate proceedings and as submitted during the assessment proceedings before the AO. The assessee has furnished all the relevant details as mentioned by the AO and produced all the complete books of account during the assessment proceedings. The appellant has filed a copy of letter dated 08-03-2013, submitted to the AO during assessment proceedings wherein a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... und any defects in the maintenance of the books of account, hence the GP of addition made by the AO was rightly deleted by the ld. CIT(A). We find that the ld. CIT(A) has given of details of finding as per Para 5 reproduced as under: 5. I have considered the facts of the case, basis of addition made by AO and submissions of appellant. As it is clear from the assessment order, AO has rejected the books u/s. 145(3) of the Act on the grounds that the appellant has not maintained day to day stock register and quantity-wise quality register; it has not furnished complete details with supporting evidence in respect of various expenses such as stores, spare parts, packing material, job work, power and fuel etc.; it has not produced complete set ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ils of other expenses also supported with documentary evidence. The appellant has reconciled the difference in transactions with the parties to whom notices u/s.133(6) were issued by AO and also justified the allowance of expenses u/s. 40(a)(ia) of the Act. From the above, it is evident that reasons given by AO for rejecting the books of account u/s. 145(3) are based on wrong facts and against the truth. Complete books of account and supporting evidence were produced before him and he failed to find any defect or irregularity in them. The conclusion drawn by AO that the assessee has not maintained day to day stock register and quantity-wise quality register is also not correct which is evident from the submissions of appellant. In absence o ..... X X X X Extracts X X X X X X X X Extracts X X X X
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