Assessee was engaged in trading of rice. It showed profits in two transactions and loss in two transactions. AO after considering entire material including account books held that loss-making transactions were bogus and, accordingly, disallowed loss. Assessee contended that AO was not justified in accepting two entries in books of account relating to profits and disregarding other two entries concerning losses. High Court held that since books of account or any other material produced before Assessing Officer by assessee were simply meant to support disclosure of profit or loss set out in its return and it was always open to Assessing Officer to scrutinise such material or entries in books of account before accepting same for purpose of assessment. (AY. 1989-90)