https://www.taxtmi.com/caselaws?id=352308 A stock difference shown only in bank statements does not, by itself, justify an addition for unaccounted stock or assumed profit on its sale unless supported by corroborative material such as unrecorded purchases, sales or other direct evidence. Where the books contain deficiencies, however, a reasonable gross profit estimate may be made, and averaging the gross profit rates of three years was treated as an acceptable method in this matter. The stock-related additions were deleted, while the gross profit estimate based on the average rate was sustained. en-us Fri, 08 Dec 2017 00:00:00 +0530 Tue, 12 Dec 2017 09:35:17 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=352308 A stock difference shown only in bank statements does not, by itself, justify an addition for unaccounted stock or assumed profit on its sale unless supported by corroborative material such as unrecorded purchases, sales or other direct evidence. Where the books contain deficiencies, however, a reasonable gross profit estimate may be made, and averaging the gross profit rates of three years was treated as an acceptable method in this matter. The stock-related additions were deleted, while the gross profit estimate based on the average rate was sustained. Case-Laws Income Tax Fri, 08 Dec 2017 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=352308