https://www.taxtmi.com/caselaws?id=168289 After rejection of the books of account, income had to be estimated on a flat gross profit rate under the applicable income-tax provision. Once that estimate was adopted on the total turnover, the Department could not retain separate additions based on the discarded accounts, because they were inconsistent with the estimate already made. The computation was also affected by an arithmetical error: the additions relating to oil and cake yields already brought the gross profit to about 9.5%, so a further addition for alleged unaccounted profit on permit sales could not stand. The disputed addition was therefore unsustainable. en-us Tue, 24 Feb 1959 00:00:00 +0530 Mon, 16 Feb 2015 09:58:01 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=168289 After rejection of the books of account, income had to be estimated on a flat gross profit rate under the applicable income-tax provision. Once that estimate was adopted on the total turnover, the Department could not retain separate additions based on the discarded accounts, because they were inconsistent with the estimate already made. The computation was also affected by an arithmetical error: the additions relating to oil and cake yields already brought the gross profit to about 9.5%, so a further addition for alleged unaccounted profit on permit sales could not stand. The disputed addition was therefore unsustainable. Case-Laws Income Tax Tue, 24 Feb 1959 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=168289