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3. That with regard to the first ground of appeal relates to deletion of trading addition of Rs. 6,00,000/-.

4. That AO in his order has observed that during the course of verification of vouchers, some of the vouchers were found supported with self made slips by the employees of the assessee instead of bills issued by third persons and also in view of nature of business of the assessee wherein the assessee deals in hundreds of items and also showing different ratio of storage and wastage in different items, leakages in profit cannot be ruled out. Considering all the facts the AO made a lump-sum disallowance of Rs. 6,00,000/- to cover up all the possible leakages. That regarding this issue the Ld. CIT(A) in his order has observed and held that the AO has made addition on account of some vouchers being supported by self made slips of the employees of the company and leakages of profit due to assessee dealing in number of items. The assessee has explained that the assessee company is engaged in various kinds of business i.e. textile, power, FMCG, direct marketing etc. and every industry has its own peculiarities leading to variation in the GP. The assessee has pointed out that due to reasons beyond the appellant's control, assessee's turnover has also decreased by approx. 859.74 crore leading to slight decrease in the GP. Further the assessee product mix for the sales for two year cannot be same which leads to slight variation in the GP. The books of the assessee have been audited an assessee has maintained all the bills and vouchers for claim of expenses. It has been pointed out by the assessee that the assessee's claim of expenses are based on the bills, vouchers and supporting evidence and no unvouched expenses has been pointed out. The assessee is a company and evidently some of the vouchers for which it is not possible to obtain proper third party bills by the employees, they were supported by the notings provided by the employees. The expenses have been claimed to be genuine. Further the assessee has pointed out that the shortages and wastages in the items dealt by the assessee have been duly accounted and assessee has maintained automized accounting process. The books of the assessee have been audited under Companies Act as well as the Income Tax Act. The AO has not pointed out which expenditure claimed by the appellant was bogus or inflated. The books of the assessee have not been rejected u/s 145(3) of the I.T.Act. That therefore the Ld. CIT(A) deleted the adhoc addition made by the AO of Rs. 6,00,000/-.