Books cannot be rejected without defects -Low GP not enough: ITAT Ahmedabad

Mukeshkumar Chandulal Dalwadi Vs ACIT (ITAT Ahmedabad) Books cannot be rejected without defects -Low GP not enough– Tribunal follows Guj HC Ruling AO had rejected books u/s 145(3) & applied a higher GP rate of 3% on turnover of ₹7.23 crore, against declared GP rate of 1.84% (₹13.30 lakh) AO’s Findings Assessee engaged in trading of grocery & cattle feed. Declared GP rate fell from 2.78% in AY 2016-17 to 1.84% in AY 2017-18. Assessee’s explanation of cattle feed price volatility was not backed by sufficient evidence. Held that books were unreliable; estimated GP @3%, resultin...