Additions not valid merely on the ground of fall in GP ratio, if books of account are accepted by AO

Brief Facts of the Case        

• Assessee, a partnership firm, was engaged in the business of manufacturing of enameled wire, submersible wire, bare copper wire etc.
• Assessee filed its return of income related to AY 2009-10 declaring gross loss of (-)3.65% against the total turnover of Rs.590703526/- with net loss of Rs.36385885/-
• Gross Profit ratio of assessee for immediately two preceding assessment years 2008-09 and 2007-08 was 5.48% and 5.47% resp

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