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Section 145 of the Income-tax Act, 1961 - Method of accounting - Rejection of accounts - Assessment year 2004-05 - Where Tribunal held that book results were genuine, addition on account of operational expenses, rebate and discount by rejecting books of account was not justified [In favour of assessee] The assessee filed the return declaring loss. The assessment was made at a loss in which many additions were made and certain deductions were disallowed. As regards the operational receipts and expenses, the Assessing Officer held that the genuineness of the claim of the operational expenses was not established and the correct profit or loss from business could not be ascertained from the receipts and expenses shown during the year. The Assessing Officer, therefore, rejected the book results shown by the assessee under section 145. Insofar as the rebate and discount expenses were concerned, the Assessing Officer held that since the genuineness of those expenses was not established, the expenses claimed by the assessee were not allowable. Held that the Tribunal had held that the 'operational expenses' had been genuinely and accurately shown which were as per various clauses of the agreement and no defect in the regular books of account was pointed out by the Assessing Officer nor any discrepancy in the operational charges shown by the assessee-company in terms of those agreements was pointed out. In view of these findings, additions were not justified. CASES REFERRED TO CIT v. K. S. Bhatia [2004] 269 ITR 577 (P&H), CIT v. Om Overseas [2009] 315 ITR 185 (P&H), Madnani Construction Corporation Pvt. Ltd. v. CIT [2008] 296 ITR 45 (Gauhati), Pandit Bros. v. CIT [1954] 26 ITR 159 (P&H). Ms. Urvashi Dhugga for the Appellant. JUDGMENT Ajay Kumar Mittal, J. - This appeal under section 260A of the Income-tax Act, 1961 (for short "the Act") has been filed by the Revenue against the order dated December 31, 2009, passed by the Income-tax Appellate Tribunal, Delhi Bench "B", New Delhi (in short "the Tribunal") in I. T. A. No. 313/Del/2009, relating to the assessment year 2004-05. 2. The following substantial questions of law have been claimed for determination by…

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