https://www.taxtmi.com/caselaws?id=373891 Books of account cannot be rejected under section 145(3) merely because gross profit has declined; absent specific defects, discrepancies, suppression of sales, or inflation of expenditure, the accounts remain acceptable and income cannot be estimated on conjectural gross profit differences. The article also states that section 40(a)(ia) does not extend to software expenditure capitalised in the books where no revenue deduction is claimed and only depreciation is sought under section 32, because the provision targets expenditure payments liable to TDS, not statutory depreciation allowances. On that reasoning, the gross profit addition and the capitalised software disallowance were found unsustainable. en-us Wed, 02 Jan 2019 00:00:00 +0530 Tue, 22 Jan 2019 08:05:20 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=373891 Books of account cannot be rejected under section 145(3) merely because gross profit has declined; absent specific defects, discrepancies, suppression of sales, or inflation of expenditure, the accounts remain acceptable and income cannot be estimated on conjectural gross profit differences. The article also states that section 40(a)(ia) does not extend to software expenditure capitalised in the books where no revenue deduction is claimed and only depreciation is sought under section 32, because the provision targets expenditure payments liable to TDS, not statutory depreciation allowances. On that reasoning, the gross profit addition and the capitalised software disallowance were found unsustainable. Case-Laws Income Tax Wed, 02 Jan 2019 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=373891