https://www.taxtmi.com/caselaws?id=339597 Rejection of books under section 145(3) requires identifiable defects that render the profit results unreliable; on the facts, quantitative records, tax audit material, and the assessee's explanation for lower gross profit showed no sound basis for estimation, so the gross profit addition was deleted. An ad hoc disallowance of expenses cannot stand without specific material showing bogus or non-business expenditure; as the disallowance was made on a blanket, suspicion-based basis, it was also deleted. The substantive additions were therefore set aside, and the challenge to consequential interest did not survive. en-us Tue, 28 Feb 2017 00:00:00 +0530 Fri, 03 Mar 2017 06:49:40 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=339597 Rejection of books under section 145(3) requires identifiable defects that render the profit results unreliable; on the facts, quantitative records, tax audit material, and the assessee's explanation for lower gross profit showed no sound basis for estimation, so the gross profit addition was deleted. An ad hoc disallowance of expenses cannot stand without specific material showing bogus or non-business expenditure; as the disallowance was made on a blanket, suspicion-based basis, it was also deleted. The substantive additions were therefore set aside, and the challenge to consequential interest did not survive. Case-Laws Income Tax Tue, 28 Feb 2017 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=339597