https://www.taxtmi.com/caselaws?id=239034 Where an assessee has credited on-money receipts in an audited profit and loss account, those audited accounts cannot be diluted by claiming that only a notional portion represents profit or by asserting unproven unrecorded expenditure. In the absence of material showing additional expenditure, incorrect accounts, or a valid basis to reject the books under section 145(3) of the Income-tax Act, the audited profit figure must be accepted. A deduction unsupported by evidence is also inconsistent with section 37. The ITAT Rajkot held that the full net profit as reflected in the audited accounts was assessable and that the 30% estimate adopted by the first appellate authority could not stand. en-us Thu, 30 May 2013 00:00:00 +0530 Tue, 29 Oct 2013 13:05:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=239034 Where an assessee has credited on-money receipts in an audited profit and loss account, those audited accounts cannot be diluted by claiming that only a notional portion represents profit or by asserting unproven unrecorded expenditure. In the absence of material showing additional expenditure, incorrect accounts, or a valid basis to reject the books under section 145(3) of the Income-tax Act, the audited profit figure must be accepted. A deduction unsupported by evidence is also inconsistent with section 37. The ITAT Rajkot held that the full net profit as reflected in the audited accounts was assessable and that the 30% estimate adopted by the first appellate authority could not stand. Case-Laws Income Tax Thu, 30 May 2013 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=239034