No Rejection of books of accounts in absence of any material defect

Brief of the Case In the case of ACIT vs. Smarneev Fashions Pvt. Ltd, ITAT Ahmedabad held that merely because there is a fall in gross profit or there is a NIL closing stock at the end of the year the books of accounts cannot be rejected. Since the appellant was closing down its business and has in fact closed down all the operations, the stock at the year-end was Nil which was duly supported by the documentary evidence. The assessing officer was not justified in comparing the GP ratio of normal working years with the year in which there was a close of business. Facts of the Case A.O. rejected...