https://www.taxtmi.com/caselaws?id=356121 Once books of account are rejected under section 145(3) for alleged unverifiable purchases, income must be estimated on a best-judgment basis rather than through a separate addition to the trading result. The note states that where sales are accepted and the purchases from certain parties are treated as non-genuine, the proper approach is to compute income by applying an appropriate gross profit rate with reference to past history and the average gross profit accepted in earlier years. On that approach, a percentage disallowance confined to the impugned purchases is not justified, and recomputation on gross profit basis becomes the operative method. en-us Mon, 29 Jan 2018 00:00:00 +0530 Sun, 25 Feb 2018 21:52:40 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=356121 Once books of account are rejected under section 145(3) for alleged unverifiable purchases, income must be estimated on a best-judgment basis rather than through a separate addition to the trading result. The note states that where sales are accepted and the purchases from certain parties are treated as non-genuine, the proper approach is to compute income by applying an appropriate gross profit rate with reference to past history and the average gross profit accepted in earlier years. On that approach, a percentage disallowance confined to the impugned purchases is not justified, and recomputation on gross profit basis becomes the operative method. Case-Laws Income Tax Mon, 29 Jan 2018 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=356121