https://www.taxtmi.com/caselaws?id=117086 Under section 145 of the Income-tax Act, books of account should not be rejected merely because the declared gross profit appears low or because materials and expenses cannot be fully correlated in a large contract job, where receipts are from a government-owned body, payments are made by cheque, and no specific defect in the books is identified. On those facts, a trading addition based on an estimated gross profit rate was not sustainable. The separate issue of alleged non-genuine purchases required fresh examination because the appellate record was inadequate and the matter was remitted for reconsideration after hearing both sides. en-us Thu, 27 Feb 2003 00:00:00 +0530 Wed, 20 Jun 2012 12:41:53 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=117086 Under section 145 of the Income-tax Act, books of account should not be rejected merely because the declared gross profit appears low or because materials and expenses cannot be fully correlated in a large contract job, where receipts are from a government-owned body, payments are made by cheque, and no specific defect in the books is identified. On those facts, a trading addition based on an estimated gross profit rate was not sustainable. The separate issue of alleged non-genuine purchases required fresh examination because the appellate record was inadequate and the matter was remitted for reconsideration after hearing both sides. Case-Laws Income Tax Thu, 27 Feb 2003 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=117086