https://www.taxtmi.com/caselaws?id=173125 Where the accounts do not enable true profits to be properly deduced, the taxing authority may reject them and make a reasonable estimate under the proviso to section 13 on the basis of relevant material. Defects such as absence of a stock register, inability to verify stocks and sales, and an unexplained low gross profit rate can justify that opinion. The authority is not required to accept isolated proved margins on selected sales while the rest of the business is estimated, because assessment must rest on the total turnover and not a piecemeal reconstruction. The estimate of profits was therefore upheld against the assessee. en-us Tue, 03 Sep 1957 00:00:00 +0530 Wed, 09 Sep 2015 15:04:04 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=173125 Where the accounts do not enable true profits to be properly deduced, the taxing authority may reject them and make a reasonable estimate under the proviso to section 13 on the basis of relevant material. Defects such as absence of a stock register, inability to verify stocks and sales, and an unexplained low gross profit rate can justify that opinion. The authority is not required to accept isolated proved margins on selected sales while the rest of the business is estimated, because assessment must rest on the total turnover and not a piecemeal reconstruction. The estimate of profits was therefore upheld against the assessee. Case-Laws Income Tax Tue, 03 Sep 1957 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=173125