The HC held that where the AO estimates gross profit after...

The HC held that where the AO estimates gross profit after rejecting the assessee's books of accounts, the estimated net profit encompasses all business income and receipts, precluding any further disallowance under section 43B for VAT or service tax liabilities paid. Since the assessee neither claimed deductions nor debited such amounts in the profit and loss account, no separate addition or disallowance arises. Precedents confirm that when income is estimated under the proviso to section 145, no additional adjustments for expenses like interest, salary, or taxes paid are permissible. Consequently, the Tribunal's order remitting the matter to the AO was unwarranted. The HC allowed the appeal, affirming that the estimation of profits subsumes all relevant income and expenses, obviating further modifications.

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