https://www.taxtmi.com/caselaws?id=161990 Low gross profit, without evidence of false entries, inflated purchases, suppressed sales, or a defective accounting method, is insufficient to justify rejection of books of account. The Court stated that the proviso to section 13 can be invoked only when there is material showing that the accounting system is unsatisfactory or the entries are unreliable. On the facts recorded, the accounts were not shown to be untrustworthy, so rejection of the books and application of the proviso were not justified, and the issue was answered in favour of the assessee. en-us Tue, 03 Jan 1961 00:00:00 +0530 Fri, 14 Feb 2014 12:07:20 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=161990 Low gross profit, without evidence of false entries, inflated purchases, suppressed sales, or a defective accounting method, is insufficient to justify rejection of books of account. The Court stated that the proviso to section 13 can be invoked only when there is material showing that the accounting system is unsatisfactory or the entries are unreliable. On the facts recorded, the accounts were not shown to be untrustworthy, so rejection of the books and application of the proviso were not justified, and the issue was answered in favour of the assessee. Case-Laws Income Tax Tue, 03 Jan 1961 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=161990