https://www.taxtmi.com/caselaws?id=350496 Where purchases are found unverifiable and the books are rejected under section 145(3), the entire purchase claim need not be disallowed if the record still shows actual use of the goods in business. In such circumstances, only the profit element embedded in the disputed purchases may be estimated on a reasonable basis, taking into account gross profit trends, the nature of the business, and the available quantitative consumption details. Applying that approach, the Tribunal held that the lower estimate required modification and sustained the addition only to the extent of 10% of the disputed purchases, granting relief on the balance. en-us Tue, 24 Oct 2017 00:00:00 +0530 Tue, 07 Nov 2017 06:47:50 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=350496 Where purchases are found unverifiable and the books are rejected under section 145(3), the entire purchase claim need not be disallowed if the record still shows actual use of the goods in business. In such circumstances, only the profit element embedded in the disputed purchases may be estimated on a reasonable basis, taking into account gross profit trends, the nature of the business, and the available quantitative consumption details. Applying that approach, the Tribunal held that the lower estimate required modification and sustained the addition only to the extent of 10% of the disputed purchases, granting relief on the balance. Case-Laws Income Tax Tue, 24 Oct 2017 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=350496