Allowing the appeal the Court held that since assessee had offered explanation based on documentary evidences and evidences so filed by assessee were not found to be ingenuine or fake, genuineness of sale transaction of jewellery could neither be disputed nor section 68 could be invoked to make addition in income of assessee. The asseessee is in the business of various commodities and he disclosed gross profit rate of 4.6 per cent. Assessing Officer increased gross profit rate to 6 per cent and made addition of Rs. 30.19 lacs in gross profit of assessee. Tribunal made an ad hoc addition of Rs. 4 lacs to gross profit of assessee. On appeal the Court held that  since no reason whatsoever had been assigned by Tribunal to make addition of Rs. 4 lacs to gross profit of assessee and even it had not recorded any finding based on any material so as to disbelieve gross profit rate disclosed by assessee, addition of Rs. 4 lacs is  set aside. (AY. 2005-06)