Estimated trading profit addition fails where properly maintained books are not rejected and low profit rate alone is insufficient.

Where the books of account were found properly maintained and there was nothing on record to justify rejection of the trading account, a mere lower profit rate was insufficient to sustain an estimated trading addition. Once rejection of the trading account was unwarranted, the estimated addition could not survive, and the assessee's trading account was accepted.

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Issues: Whether the addition sustained on account of estimated trading profit was justified despite the finding that there was nothing on record to warrant rejection of the books of account.

Analysis: The books of account were treated as properly maintained, and a mere lower rate of profit, by itself, was held insufficient to support any addition. Once the rejection of the trading account was found to be unwarranted, the estimated addition could not survive.

Conclusion: The addition sustained by the appellate authority was deleted and the assessee's trading account was accepted.

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