https://www.taxtmi.com/caselaws?id=388451 After rejection of books under section 145(3), income was to be estimated with reference to the assessee's past results and comparable history, and the 1% net profit rate was upheld because earlier years showed consistently low margins and the higher rate lacked adequate basis. Interest earned on fixed deposits kept as security for contract work was treated as business income because the deposits were integrally connected with business operations. Once income was estimated on a net profit basis, separate disallowances under section 40(a)(ia) and section 40A(3) were not separately sustainable, and the deletions of those additions were upheld. en-us Thu, 31 Oct 2019 00:00:00 +0530 Fri, 15 Nov 2019 16:08:42 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=388451 After rejection of books under section 145(3), income was to be estimated with reference to the assessee's past results and comparable history, and the 1% net profit rate was upheld because earlier years showed consistently low margins and the higher rate lacked adequate basis. Interest earned on fixed deposits kept as security for contract work was treated as business income because the deposits were integrally connected with business operations. Once income was estimated on a net profit basis, separate disallowances under section 40(a)(ia) and section 40A(3) were not separately sustainable, and the deletions of those additions were upheld. Case-Laws Income Tax Thu, 31 Oct 2019 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=388451