The Assessing Officer made addition u/s. 68 on account of unexplained deposits and unsecured loans from Z and disallowed interest paid on the unexplained deposits apart from making addition on account of unrecorded sales. The assessee had discharged its onus of proving the genuineness of the loans, that the adverse material relied upon by the Assessing Officer for making the addition of unaccounted sales receipts pertained to some other transaction of the assessee. The Commissioner (Appeals) applied a net profit rate of 17.5 per cent. of the assessee’s turnover for estimating the profits based on the disclosure made by other group entities. On appeals by the Revenue and the assessee: Held that in the absence of any incriminating material remained unchallenged by the Revenue there was no reason to reject the book results and make an estimation of the net profit rate. Accordingly, the addition made on account of the net profit was directed to be deleted. Dismissing the Revenue’s appeal and the assessee’s cross-appeal and allowing the assessee’s appeal that the order of the Commissioner (Appeals) was in conformity with the proposition laid down by the jurisdictional High Court. Therefore, the Revenue’s contention was to be dismissed. (AY. 2012-13 to 2014-15)