https://www.taxtmi.com/caselaws?id=396959 Where business income is determined on an estimated profit basis by applying a gross profit rate to unaccounted turnover, and no separate deduction is allowed for the relevant purchases or expenditure, Section 40A(3) cannot be used to make an additional disallowance. The computation already captures the profit element embedded in the turnover, so there is no separately deductible expense to which the provision can apply. On that footing, the disallowance was held inapplicable and the Revenue's challenge failed. en-us Wed, 08 Jul 2020 00:00:00 +0530 Mon, 27 Jul 2020 10:42:36 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=396959 Where business income is determined on an estimated profit basis by applying a gross profit rate to unaccounted turnover, and no separate deduction is allowed for the relevant purchases or expenditure, Section 40A(3) cannot be used to make an additional disallowance. The computation already captures the profit element embedded in the turnover, so there is no separately deductible expense to which the provision can apply. On that footing, the disallowance was held inapplicable and the Revenue's challenge failed. Case-Laws Income Tax Wed, 08 Jul 2020 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=396959