In case of rejection of books, estimation of gross profit based on past history justified

Brief of the case Assesse, a manufacture of harvester combines. In course of assessment , assesse failed to produce books of accounts of its business .There was also a decline in G.P. rate to 10.59% from 11.25% in earlier years. There were also certain discrepancies in figures of closing stock. Therefore, AO thus rejected book results and estimated G.P. at rate of 12.5% of turnover.The assessee pleaded since it is not feasible to maintain stock register, therefore books should not be rejected CIT (A) upheld rejection of books , but considered G.P. rate taken by A.O. of previous year, i.e. 11.5...