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4. Being aggrieved by the order of the learned Assessing Officer, the assessee carried the matter before the learned CIT(A), who had allowed the appeal partly by observing as under:-

"I have carefully perused the order of the A.O., the submissions of the AR and the orders of the Hon'ble ITAT Jaipur filed by the AR of the appellant. In assessment year

5 ITA 49/JP/2013_ Anshu Jain Vs. ACIT 2007-08, the Hon'ble ITAT Jaipur vide its order ITA No. 237/JP/2007 dated 03/09/2010 has upheld the order of the ld. CIT(A) wherein the rejection of books of accounts in the case of the assessee on similar defects has been sustained and a lump sum addition of Rs. 1 lac has been confirmed. Thus, the facts of the case of the appellant are covered by the finding of the Hon'ble ITAT Jaipur in his own case in the previous assessment year. As the AR has not been able to controvert the finding of the Hon'ble ITAT Jaipur regarding the rejection of books of accounts by bringing any new evidence or argument, the rejection of books of accounts by invoking provisions of section U/s 145(3) is sustained. Regarding estimation of income, the Hon'ble ITAT Jaipur has held that the assessee's own case is the best guide for estimating the income after rejection of the books of accounts by placing reliance on the Hon'ble jurisdictional High Court in the case of Gotan Lime Khanij Udyog vs. CIT 256 ITR 253. As per the N.P. rate chart submitted by the appellant, it is seen that the turnover has decreased from Rs. 3,53,30,516/- in the immediately preceding assessment year to Rs. 2,79,12,589/- in this assessment year whereas the n.p. rate subject to depreciation has been confirmed by the Hon'lbe ITAT Jaipur at 13.93% has increased to 14.70%. It is a generally accepted fact that the net profit rate improves with decline in turnover. Therefore, the n.p. rate subject of depreciation is estimated at 6 ITA 49/JP/2013_ Anshu Jain Vs. ACIT 18% as the turnover has declined substantially. Thus, the trading addition of Rs. 9,21,045/- is confirmed."

5. Now the assessee is in appeal before us. The ld AR for the assessee has submitted that the ld CIT(A) reduced the N.P. rate applied by the Assessing Officer @ 20.19% to 18% without assigning any cogent reason. Admittedly few defects are there in the books of the appellant which are beyond the control of the appellant. There are vast variations in the NP rate declared by the appellant for which there are a large number of factors such as increase in diesel price without any corresponding increase in freight charges, increased in repairing of the vehicles due to some accidents and timely recession in the transportation business. In the year under appeal the appellant had declared a NP rate of 14.70% on a turnover of Rs. 2.79 crores which is better than a rate of 13.64% on a turnover of Rs. 3.53 crores. In such circumstances no addition was required to be made. However, the ld CIT(A) reduced the rate of 18% merely using her estimations and observing that since the turnover has decreased the profit was required to be increased.