Tax Officer's Rejection of Cotton Exporter's Books Overturned Due to Lack of Specific Defects and Industry Margin Variations.

Addition on account of low GP - cause and effect relationship between the defect found by the AO and the addition made - AO rejected the book results as unreliable, but as rightly pointed out by the Ld.CIT(A) no specific defect has been pointed out by the AO in the books of the assessee. CIT(A) rightly said that the AO has failed to take note of the business circumstances in which the assessee operates, being an exporter of cotton garments wherein he has noted there is wide variation in margins. - CIT(A) rightly deleted the additions - AT .....

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