https://www.taxtmi.com/caselaws?id=183027 In estimating business income where books of account are absent, the rate must be fixed on the material relevant to the assessment year in question, and an earlier year's accepted rate does not mechanically control the later year. The Andhra Pradesh HC upheld the 4% profit estimate because the record did not justify applying the higher prior-year rate. It also held that depreciation must be allowed separately when income is estimated, unless the estimation expressly includes that allowance. The appellate order was therefore sustained, with estimated income at 4% and depreciation separately deducted. en-us Tue, 25 Jun 2013 00:00:00 +0530 Thu, 26 May 2016 14:36:49 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=183027 In estimating business income where books of account are absent, the rate must be fixed on the material relevant to the assessment year in question, and an earlier year's accepted rate does not mechanically control the later year. The Andhra Pradesh HC upheld the 4% profit estimate because the record did not justify applying the higher prior-year rate. It also held that depreciation must be allowed separately when income is estimated, unless the estimation expressly includes that allowance. The appellate order was therefore sustained, with estimated income at 4% and depreciation separately deducted. Case-Laws Income Tax Tue, 25 Jun 2013 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=183027