https://www.taxtmi.com/caselaws?id=376664 Books of account may be rejected under section 145(3) where stock records are unreliable, quantitative details are absent, and trading stock cannot be properly valued from the accounts. Here, the stock register did not distinguish qualities, types, or stages of processing, and the auditor noted that quantitative particulars were not furnished. These defects were treated as material because true trading results could not be deduced from the books. The ITAT also accepted estimation of income by reference to the assessee's own past results, holding that the gross profit rate applied by the Revenue was not shown to be excessive or arbitrary. Accordingly, rejection of accounts and estimation at 8.45% were sustained. en-us Mon, 25 Feb 2019 00:00:00 +0530 Wed, 13 Mar 2019 10:07:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=376664 Books of account may be rejected under section 145(3) where stock records are unreliable, quantitative details are absent, and trading stock cannot be properly valued from the accounts. Here, the stock register did not distinguish qualities, types, or stages of processing, and the auditor noted that quantitative particulars were not furnished. These defects were treated as material because true trading results could not be deduced from the books. The ITAT also accepted estimation of income by reference to the assessee's own past results, holding that the gross profit rate applied by the Revenue was not shown to be excessive or arbitrary. Accordingly, rejection of accounts and estimation at 8.45% were sustained. Case-Laws Income Tax Mon, 25 Feb 2019 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=376664