https://www.taxtmi.com/caselaws?id=308243 Low profitability alone is not a sufficient basis to reject books of account that are otherwise regular and free from defects. The taxing authority must have valid reasons and some additional material showing falsity or improper maintenance before disregarding the accounts, and profit rate must be assessed in the light of surrounding commercial circumstances. Low profits may justify closer scrutiny, but they do not by themselves prove that the books are false or unreliable. The principle stated is that rejection of defect-free accounts cannot rest merely on a low profit rate. en-us Tue, 03 Feb 1970 00:00:00 +0530 Fri, 09 Jun 2023 17:02:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=308243 Low profitability alone is not a sufficient basis to reject books of account that are otherwise regular and free from defects. The taxing authority must have valid reasons and some additional material showing falsity or improper maintenance before disregarding the accounts, and profit rate must be assessed in the light of surrounding commercial circumstances. Low profits may justify closer scrutiny, but they do not by themselves prove that the books are false or unreliable. The principle stated is that rejection of defect-free accounts cannot rest merely on a low profit rate. Case-Laws VAT and Sales Tax Tue, 03 Feb 1970 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=308243