The assessee submitted reply before the learned Principal CIT stating that the trading activities took place during the period in consideration, the losses claimed in Bardana account, Husk account, Phuck account, Rice account were due to poor quality of the items, depreciation was rightly claimed on building and machinery as trading was done during the relevant period. Cash Balance of Rs. 65,65,625 was the opening cash and sales/business receipts during the year, cash deposits were out of sale proceeds during the year. A copy of account of commodity profit has also been furnished. It has further been stated that most of the assets do not fall under the ambit of WT Act and that all assets were old and not acquired during the year under consideration.However, the Principal CIT rejected the submissions of the assessee and held that the order passed by the AO is erroneous and prejudicial to the interest of the Revenue.Aggrieved by the order of the learned Principal CIT the assessee is in appeal before Tribunal.