Held, allowing the appeal, that the assessee had filed its stock book of polished diamonds date-wise and carat-wise and details of sales and purchases and the reconciliation with trading account and sample invoices for agency commission with the invoices in respect of import of the purchases. The audit report did not disclose any defect in the maintenance of books of account by the assessee. The gross profit could easily be ascertained on the basis of the documents filed by the assessee. This apart, the Assessing Officer had accepted a similar explanation of the assessee for the assessment year 2018-19 and the Department had been accepting the assessee’s method of accounting in earlier years as well. The Assessing Officer had not brought on record any other comparable case. The assessee had maintained quantitative details of diamonds. The qualitative details of stock of diamonds piece-wise, colour-wise, data-wise and carat-wise were not required to be maintained under the Act and Rules. The Commissioner (Appeals) had failed to appreciate the facts in the light of the relevant law. Addition made by the Assessing Officer merely on the basis of estimation for want of details of assessee’s diamond stock piece-wise, colour-wise, data-wise and carat-wise, and grade-wise is not legally tenable and the maintenance of the assessee’s books of account was in accordance with the provision of the Act.  (AY.2017-18)