https://www.taxtmi.com/caselaws?id=356121 Rejection of books of account for unverifiable purchases requires income to be estimated on a best-judgment basis rather than by making a separate percentage disallowance of those purchases. Where sales remain undisputed and purchases from certain parties are treated as non-genuine, the trading result should be determined by applying an appropriate gross profit rate. Past history and the average gross profit rate declared and accepted in earlier years provide the relevant basis for estimation. The percentage addition to unverifiable purchases was set aside, and income was directed to be recomputed using the average gross profit rate. 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 Rejection of books of account for unverifiable purchases requires income to be estimated on a best-judgment basis rather than by making a separate percentage disallowance of those purchases. Where sales remain undisputed and purchases from certain parties are treated as non-genuine, the trading result should be determined by applying an appropriate gross profit rate. Past history and the average gross profit rate declared and accepted in earlier years provide the relevant basis for estimation. The percentage addition to unverifiable purchases was set aside, and income was directed to be recomputed using the average gross profit rate. Case-Laws Income Tax Mon, 29 Jan 2018 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=356121