https://www.taxtmi.com/caselaws?id=450375 Delhi HC held that AO cannot make additions on estimation basis without first rejecting books of account under Section 145(3) and proceeding under Section 144. The court emphasized that pick-and-choose method of rejecting certain entries while accepting others without proper justification is arbitrary and leads to erroneous income computation. Since AO made additions for disallowed expenses, inflated purchases, and seized cash without rejecting books of account despite being provided with bills, vouchers, and party addresses, such assessment was held unsustainable in law. en-us Fri, 01 Mar 2024 00:00:00 +0530 Fri, 27 Feb 2026 11:19:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=450375 Delhi HC held that AO cannot make additions on estimation basis without first rejecting books of account under Section 145(3) and proceeding under Section 144. The court emphasized that pick-and-choose method of rejecting certain entries while accepting others without proper justification is arbitrary and leads to erroneous income computation. Since AO made additions for disallowed expenses, inflated purchases, and seized cash without rejecting books of account despite being provided with bills, vouchers, and party addresses, such assessment was held unsustainable in law. Case-Laws Income Tax Fri, 01 Mar 2024 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=450375