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7. Per contra, the ld. DR is heard who has relied on the order of the lower authorities and our reference was drawn to the findings of the ld. CIT(A) which are contained at para 3.3 which reads as under:-

"3.3 I have perused the facts of the case, the assessment order and the submissions of the appellant. The AO noted that the appellant has returned a gross profit of Rs 10,56,671/-on a sales turnover of Rs 1,76,11,175/- giving a GP rate of 6% from the manufacturing activity. This issue has been decided by the ITAT, Jaipur for Assessment year 2012-13 wherein the appellant had shown a GP rate of 6.76% which the AO had estimated at 8% after rejection of books and CIT(A) had confirmed the same. In the present proceedings it was stated that a marginal fall in GP rate of 0.76% is attributable to the increase in turnover and increase in purchase cost of material. It was further submitted that if the books of account are rejected and there is application of provisions of section 145(3), a reasonable profit may be applied. As regards rejection of books, the same has been resorted to in past several years due to defects in the book of accounts and upheld by the ITAT. In fact for assessment year 2012-13 the appellant has not even pressed this ground before the tribunal. In the order for assessment year 2012-13 the ITAT had held that the AO had not given any basis for applying GP rate of 8% which is followed from the past years. It was also held that in view of the past history the same at GP% of 6.76% was better than the previous year of 6.06% and thus even on decreased turnover, the appellant was able to report a GP rate of 6.76% M/s Kiran Infra Engineers Ltd., Jaipur Vs. ACIT, Jaipur which is better than in the past and the same was accepted. In the year under consideration rejection of books has already been accepted by the appellant in the past and by its own contention, the nature of business having remained the same as in the previous year. In this year, it is seen that there is increase in turnover and GP has gone down from 6.76% to 6%. In my opinion, since the GP rate has gone down and the rejection of books has been accepted by the appellant, the estimation of GP at 7% for the current year will be in consonance with 6.7% in the previous year and the same is applied. Ground of appeal is partly allowed."