https://www.taxtmi.com/caselaws?id=377326 An addition based solely on a managing partner's statement estimating about 15% gross profit was held unsustainable where the estimate was not backed by corroborative evidence and the audited books of account had not been rejected. The legal position applied is that an admission is relevant but not conclusive, and a retracted or unsubstantiated statement cannot, by itself, support an income addition without independent and cogent material. Low gross profit, without defects in the accounts or proof that the books are unreliable, was treated as insufficient for an estimated addition. The deletion of the addition was therefore upheld. en-us Thu, 07 Feb 2019 00:00:00 +0530 Mon, 06 Oct 2025 15:55:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=377326 An addition based solely on a managing partner's statement estimating about 15% gross profit was held unsustainable where the estimate was not backed by corroborative evidence and the audited books of account had not been rejected. The legal position applied is that an admission is relevant but not conclusive, and a retracted or unsubstantiated statement cannot, by itself, support an income addition without independent and cogent material. Low gross profit, without defects in the accounts or proof that the books are unreliable, was treated as insufficient for an estimated addition. The deletion of the addition was therefore upheld. Case-Laws Income Tax Thu, 07 Feb 2019 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=377326