Allowing the appeal of the revenue the Court held that, that the assessment order did not show that the Assessing Officer applied her mind to the correctness of the books of account produced before her except to note that the books of account were produced and test checked. The Assessing Officer was required to have carefully dealt with the case especially where the assessee had surrendered Rs. 2,15,00,000 during survey where huge amount of Rs. 1,31,00,000 was surrendered on account of undisclosed investment in construction of building and Rs.70,00,000 on account of unexplained investment in stock. It was clear that the assessee had attempted to offset the surrender made by him by claiming loss in the business for otherwise the taxable income could not have been Rs. 1,35,52,050 against a surrender of Rs. 2,15,00,000 made by it. In such circumstances, the assessment order passed under section 143(3) of the Act was erroneous and prejudicial to the interests of the Revenue and the Tribunal erred in setting aside the order passed by the Commissioner under section 263 of the Act. The Court also directed  the  Registry to forward a copy of this order to the Central Board of Direct Taxes to issue necessary instructions to all the Assessing Officers in cases of search and seizure or where survey operations have been carried out by the Department and surrender made or concealed income detected, to ensure proper scrutiny of such cases and discuss reasons for rejecting or accepting the books of account of the assessee and not to merely record in slipshod or cursory manner that “the books of account produced and test checked” as done by the Assessing Officer.(AY. 2008 -09)