ITAT Grants Fresh Opportunity in Section 68 and GP Additions

The ITAT partly allowed the assessee's appeal by remanding additions relating to unsecured loans and capital introduction for fresh verification, while substantially reducing the trading addition arising from application of a higher gross profit rate. 

The Tribunal emphasised that the Revenue must conduct meaningful enquiries before invoking Section 68 and reiterated that a decline in gross profit, by itself, is insufficient to reject audited books of account.