AO cannot disallow loss for mere non-maintenance of qualitative stock records

Brief of the case: 1. AO could not disallow the loss on the basis of non-maintenance of qualitative stock records provided no adverse findings were found-  ITAT Ahmedabad held in Dhami Brothers Vs DCIT that if the assessee had not maintained any qualitative stock records to justify the sales price of diamonds and closing price of stock then the loss in the books of accounts would not be disallowed if after verification the AO had not found anything adverse about the transactions of the assessee. In other words if the AO had tried to find the real facts about the loss in the books of accounts ...