https://www.taxtmi.com/caselaws?id=67346 Where the assessee's books of account were accepted as correct and complete, a gross profit addition based on estimated sales and a higher gross profit rate could not be sustained. The ITAT noted that invoking the proviso to section 145(1) did not justify a trading addition in the absence of any finding that transactions were outside the books or that the entries were incorrect. Reliance on an earlier assessment year, without accounting for the time gap and rising prices, was held to be an unsound basis for estimation. The gross profit addition was deleted in favour of the assessee. en-us Mon, 08 Feb 1982 00:00:00 +0530 Thu, 10 Mar 2011 11:42:32 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=67346 Where the assessee's books of account were accepted as correct and complete, a gross profit addition based on estimated sales and a higher gross profit rate could not be sustained. The ITAT noted that invoking the proviso to section 145(1) did not justify a trading addition in the absence of any finding that transactions were outside the books or that the entries were incorrect. Reliance on an earlier assessment year, without accounting for the time gap and rising prices, was held to be an unsound basis for estimation. The gross profit addition was deleted in favour of the assessee. Case-Laws Income Tax Mon, 08 Feb 1982 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=67346