Mere fall In G.P. Rate cannot be a ground for rejection of books of A/cs

Kamani Oil Industries Pvt. Ltd. Vs DCIT (ITAT Mumbai) FACTS – Assessee’s return was assessed in scrutiny assessment and income was assessed at INR 52.89 crore against returned loss of INR 3.46 crore. AO observed that the turnover of the assessee was increased, however, Gross profit rate was reduced as compared to the preceding year. AO rejected the books of account u/s 145(3) and estimated Gross profit at 9% and after adjusting the already declared gross profit, added INR 56.27 Crore. Assessee submitted that variation in GP rate was due to change in grouping of expenses and certain selling...