Ajay Kumar Mittal, J. - (1.) This appeal has been preferred by the revenue under Sec. 260A of the Income Tax Act, 1961 (in short, "the Act") against the order dated 19.1.2015, Annexure A.III, passed by the Income Tax Appellate Tribunal, New Delhi (In short, "the Tribunal") in ITA No. 534/Del/2009 for the assessment year 2005 -06, claiming following substantial questions of law: - - "1. Whether on the facts and in the circumstances, the Hon'ble ITAT was right in law in upholding the order of learned CIT(A) in deleting the addition of Rs. 1,19,93,081/ - made by the Assessing Officer on account of unexplained fall in GP especially when the assessee failed to explain the reason for fall in GP rate from 18.52% in the lst year to 15.71% during the year under consideration?
(2.) Whether on facts and circumstances of the case, the learned ITAT was justified in law in upholding the deleting of the addition on account of lower GP although the assessee has failed to substantiate continuous fall of gross profit over the years as analyzed along the parameters given by the Assessing Officer either before the Assessing Officer, the CIT(A) and before the learned ITAT?
(3.) Whether on facts and circumstances of the case, the learned ITAT was justified in law in upholding the deletion of addition on account of low gross profit by holding that the books of account of the assessee could not be rejected by the Assessing Officer despite the Assessing Officer's findings based on hard data that correct profits could not be deduced from the assessee's books?;