https://www.taxtmi.com/caselaws?id=66998 Where an assessee failed to maintain quantitative records and a stock register, the books were treated as unreliable and income could be estimated under the proviso to section 145(1) of the Income-tax Act, 1961. The article states that estimation of profits was therefore justified in principle. However, the gross profit rate had to be fair and reasonable on the facts, and the 10% rate adopted by the lower authorities was considered excessive in light of the branch's higher sales, small place of business, and trade in coarse cloth. A 9% gross profit rate was held to be appropriate on the estimated sales, reducing the trading addition accordingly. en-us Thu, 18 Dec 1980 00:00:00 +0530 Tue, 08 Mar 2011 16:48:43 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=66998 Where an assessee failed to maintain quantitative records and a stock register, the books were treated as unreliable and income could be estimated under the proviso to section 145(1) of the Income-tax Act, 1961. The article states that estimation of profits was therefore justified in principle. However, the gross profit rate had to be fair and reasonable on the facts, and the 10% rate adopted by the lower authorities was considered excessive in light of the branch's higher sales, small place of business, and trade in coarse cloth. A 9% gross profit rate was held to be appropriate on the estimated sales, reducing the trading addition accordingly. Case-Laws Income Tax Thu, 18 Dec 1980 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=66998