Unsatisfied with Assessee’s explanation that fall was due to production of new mobile parts, higher rejection, & customer-controlled pricing, AO rejected books & made addition of Rs.7.97 crore. Merely because of fall in profits, books cannot be rejected unless shown that fall was due to non-genuine expenses or suppression of receipts. Regarding fall in GP & NP, Tribunal observed that AO had summarily rejected books without cogent reasons, whereas Assessee had explained factors like rejection of materials & customer pricing. The AO was not satisfied and the AO has rejected the books of account and has made an addition of Rs.7,97,08,855/- on account of fall in GP rate. The AO rejected the books of account merely on the basis of fall in GP and NP.