https://www.taxtmi.com/caselaws?id=260920 Where books are rejected and purchases and sales are found to be accommodation entries, income may be estimated on a reasonable basis reflecting the likely benefit from passing on VAT credit and issuing purchase and sale bills. The ITAT upheld estimation at 1% of the aggregate of purchases and sales because the assessee produced no material to show the rate was excessive. Although the rejected books could not be relied on for exact expense claims, a limited ad hoc allowance was still justified for unavoidable sundry expenses incidental to bill-raising activity, resulting in partial relief to the assessee. en-us Mon, 16 Feb 2015 00:00:00 +0530 Sat, 27 Jun 2015 14:29:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=260920 Where books are rejected and purchases and sales are found to be accommodation entries, income may be estimated on a reasonable basis reflecting the likely benefit from passing on VAT credit and issuing purchase and sale bills. The ITAT upheld estimation at 1% of the aggregate of purchases and sales because the assessee produced no material to show the rate was excessive. Although the rejected books could not be relied on for exact expense claims, a limited ad hoc allowance was still justified for unavoidable sundry expenses incidental to bill-raising activity, resulting in partial relief to the assessee. Case-Laws Income Tax Mon, 16 Feb 2015 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=260920