A search was conducted under section 132 in assessee’s premises and an assessment order was passed under section 153A determining a total income by making an addition on account of loss of 99.055 kgs. gold. Tribunal allowed loss of gold. On appeal by the Revenue, allowing the appeal the Court held that  the Tribunal had allowed assessee’s appeal on premise that loss of gold accounted for only 0.047 per cent of total gold transactions which was without any rationale, from reasons recorded by Tribunal that it had given no logical explanation as to why loss of 0.047 per cent must be allowed. Further the  assessee’s explanation at first instance before Assessing Officer was that gold was misappropriated and before First Appellate Authority explanation was that it did not know about loss till conducting annual inventory. Both explanations were not supported by any evidence and if 99.055 Kgs gold were to be misappropriated, management of any prudent company would take necessary action such as filing a police complaint etc.  Second explanation that assessee did not know about loss at all, was on face of it, unacceptable. Accordingly  the reasons recorded by Tribunal were perverse and therefore, it was  set aside. (AY. 2011-12)