https://www.taxtmi.com/caselaws?id=66996 An estimated trading addition cannot be sustained where the assessee's disclosed gross profit is consistent with past results and no specific defect in the books, false entry, or comparable adverse material is shown; on those facts, the addition was deleted. Expenditure on tea, pan and similar items for employees and constituents was also held not to constitute entertainment expenditure on the facts, so the disallowance was deleted. The article thus states that estimated adjustments require a proved basis in the accounts or material record, and that such business-related refreshment s are not automatically disallowable as entertainment expense. en-us Mon, 13 Nov 1978 00:00:00 +0530 Tue, 08 Mar 2011 16:43:44 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=66996 An estimated trading addition cannot be sustained where the assessee's disclosed gross profit is consistent with past results and no specific defect in the books, false entry, or comparable adverse material is shown; on those facts, the addition was deleted. Expenditure on tea, pan and similar items for employees and constituents was also held not to constitute entertainment expenditure on the facts, so the disallowance was deleted. The article thus states that estimated adjustments require a proved basis in the accounts or material record, and that such business-related refreshment s are not automatically disallowable as entertainment expense. Case-Laws Income Tax Mon, 13 Nov 1978 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=66996