https://www.taxtmi.com/caselaws?id=759710 The ITAT Allahabad ruled on a contract business case where books of accounts were rejected. The assessee claimed deductions for demurrage, royalty, and other expenses from estimated profits. The tribunal held that once books are rejected entirely, no partial acceptance or head-wise bifurcation of claims is permissible. Contract profits were estimated at 6% of gross receipts (reduced from AO's 6.30%) after allowing demurrage reduction since it was permanently forfeited. The tribunal deleted additions under section 40(a)(ia) for non-deduction of TDS, ruling that when books are rejected, revenue cannot make additions based on the same rejected books. The appeal was partly allowed in assessee's favor. en-us Mon, 30 Sep 2024 00:00:00 +0530 Sat, 05 Oct 2024 11:57:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=759710 The ITAT Allahabad ruled on a contract business case where books of accounts were rejected. The assessee claimed deductions for demurrage, royalty, and other expenses from estimated profits. The tribunal held that once books are rejected entirely, no partial acceptance or head-wise bifurcation of claims is permissible. Contract profits were estimated at 6% of gross receipts (reduced from AO's 6.30%) after allowing demurrage reduction since it was permanently forfeited. The tribunal deleted additions under section 40(a)(ia) for non-deduction of TDS, ruling that when books are rejected, revenue cannot make additions based on the same rejected books. The appeal was partly allowed in assessee's favor. Case-Laws Income Tax Mon, 30 Sep 2024 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=759710