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turnover has decreased as compare to the previous year, he restricted the disallowance out of labour expenses to 10%.

2.2 The ld. AR vide his written submission stated that the assessee has maintained day to day books of accounts. The same is subject to audit. There is no qualification by the auditor on the accounts of the assessee. The AO has also not pointed out any instance of purchase or fabrication charges or expense which is not verifiable, He only made general observations in rejecting the books of accounts without considering the fact that assessee is not engaged in trading or manufacturing activity but is engaged in the fabrication work where number of items having varied size and types are used for which maintenance of the stock register is not feasible. All purchase, fabrication charges received and the various expenditure incurred are fully verifiable with supporting bills/vouchers or documents. The books can't be rejected only on the ground that day to day stock register is not maintained or that payment are made in cash. No specific defect is found in the books of accounts by the lower authorities. In these circumstances, the rejection of the books of accounts is unjustified. Reliance in this connection is placed on the following cases:-