https://www.taxtmi.com/caselaws?id=66998 Failure to maintain quantitative details and a stock register may justify estimating income where the books are unreliable under the proviso to section 145(1) of the Income-tax Act. However, the gross profit rate used for estimation must remain fair and reasonable in light of the business circumstances, including increased branch sales, the small locality, and trade in coarse cloth. Applying these factors, estimation of profits was sustained in principle, but the gross profit rate was reduced from 10% to 9%, resulting in a partial reduction of the trading addition. 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 Failure to maintain quantitative details and a stock register may justify estimating income where the books are unreliable under the proviso to section 145(1) of the Income-tax Act. However, the gross profit rate used for estimation must remain fair and reasonable in light of the business circumstances, including increased branch sales, the small locality, and trade in coarse cloth. Applying these factors, estimation of profits was sustained in principle, but the gross profit rate was reduced from 10% to 9%, resulting in a partial reduction of the trading addition. Case-Laws Income Tax Thu, 18 Dec 1980 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=66998