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3.2 Having considered the rival contentions of both the sides and material on record, we find that the assessee is engaged in the business of salt harvesting, matikam, transportation and excavation work, manufacture of structure fabrication and cold storage. The Assessing Officer rejected the assessee's book of Assessee: Shri Purshottam B. Pitroda Cross-Appeals: AY : 2007-08 accounts by invoking section 145 of the Act by adopting average GP rate of Assessment Year 2004-05 to 2007-08 @ 53.32% and discarded GP of the year under consideration being 48.39%. Accordingly, the impugned addition of Rs.1,76,91,830/- was made on account of low GP. The Assessing Officer rejected assessee's books mainly viz. (i) not accepting closing stock details submitted by assessee, (ii) the GP @ 48.39% of AY 07-08 is less than GP @ 51.35% of AY 06- 07 and (iii) the assessee has claimed diesel expenses of Rs.14,03,65,529/- which works out to 39.93% which ought to have been restricted to 30%. Regarding closing stock, assessee has carried out valuation of stock as per Accounting Standards and accepted principles. The Assessing Officer merely got carried away by the fact that the assessee has not maintained stock register. Merely non-maintenance of stock register cannot be a ground for rejection of books. Regarding low GP, the Assessing Officer has not appreciated that assessee's turnover has increased from Rs.24,76,97,501/- in earlier year to Rs.35,91,76,573/-, which is substantial increase in the turnover. Mere decrease in GP cannot be a ground for rejection of books of accounts.