https://www.taxtmi.com/caselaws?id=173275 The High Court ruled that additions to business profits cannot be made solely based on insufficient net profits and the absence of a stock account. The Court emphasized that the Income-tax Officer must have material evidence to justify such additions and cannot act arbitrarily. The Court held that the absence of a stock register and low profits alone are not sufficient grounds for making additions to profits. The Court awarded costs to the assessee and clarified that the ITO must have evidence before making such additions. en-us Wed, 24 Mar 1954 00:00:00 +0530 Fri, 11 Sep 2015 14:08:06 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=173275 The High Court ruled that additions to business profits cannot be made solely based on insufficient net profits and the absence of a stock account. The Court emphasized that the Income-tax Officer must have material evidence to justify such additions and cannot act arbitrarily. The Court held that the absence of a stock register and low profits alone are not sufficient grounds for making additions to profits. The Court awarded costs to the assessee and clarified that the ITO must have evidence before making such additions. Case-Laws Income Tax Wed, 24 Mar 1954 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=173275