TaxTMI 
TaxTMI 
section 145 Rejection of books of Accounts
06 Jan 2011 
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Rejection of books of accounts limited to unsupported transactions; supporting vouchers determine scope of best judgment assessments.
Whether books of account may be rejected depends on the overall factual matrix; the assessing officer may make additions only in respect of unverifiable or unsupported transactions and may apply a best judgment assessment limited to those items, while properly supported portions of the accounts remain examinable. Authorities have approved disallowance of particular expenditures lacking evidence rather than wholesale rejection of records. (AI Summary)
Whether books of account may be rejected depends on the overall factual matrix; the assessing officer may make additions only in respect of unverifiable or unsupported transactions and may apply a best judgment assessment limited to those items, while properly supported portions of the accounts remain examinable. Authorities have approved disallowance of particular expenditures lacking evidence rather than wholesale rejection of records. (AI Summary)
can books of accounts be rejected if vouchers & supporting are not proper & only on that base, can best judgement be done? whether vouchers are regarded as part of Books of Accounts?