Rejection of books of account not justified for technical or general defects

ACIT Vs Vimoni India Pvt. Ltd. (ITAT Delhi) During the proceedings before the CIT(A), the assessee provided an explanation for the decrease in the net profit ratio. It was argued that the closure of the unit at Barotiwala and the seizure of assets by the State Bank of India, due to the assessee’s inability to repay the loan, had prevented the auditors from verifying the fixed assets and stocks. The CIT(A) reviewed the facts and submissions and concluded that the AO had rejected the books of accounts solely based on the qualifications mentioned in the statutory audit report. Citing the de...