https://www.taxtmi.com/caselaws?id=120460 Failure by a manufacturing assessee to maintain day-to-day production and stock registers can justify rejection of books under section 145 where substitute records do not reliably show stock movement, wastage or by-products. Once the accounts are rejected, profit may be estimated on a best-judgment basis, but the estimate must be reasonable and supported by comparable material; an arbitrary gross profit rate was therefore modified. Unexplained cash credits and a suspense account entry were sustained because identity and confirmation evidence was inadequate. Commission expenditure was allowed only for the payment supported by loan-arranging service details. Deductions under sections 80HH and 80-I were to be recomputed on the revised profit basis. en-us Fri, 25 Jul 2008 00:00:00 +0530 Fri, 20 Jul 2012 11:24:44 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=120460 Failure by a manufacturing assessee to maintain day-to-day production and stock registers can justify rejection of books under section 145 where substitute records do not reliably show stock movement, wastage or by-products. Once the accounts are rejected, profit may be estimated on a best-judgment basis, but the estimate must be reasonable and supported by comparable material; an arbitrary gross profit rate was therefore modified. Unexplained cash credits and a suspense account entry were sustained because identity and confirmation evidence was inadequate. Commission expenditure was allowed only for the payment supported by loan-arranging service details. Deductions under sections 80HH and 80-I were to be recomputed on the revised profit basis. Case-Laws Income Tax Fri, 25 Jul 2008 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=120460