https://www.taxtmi.com/caselaws?id=768745 The Kerala HC held that the Appellate Tribunal's rejection of the running stock method for estimating sales turnover did not raise a substantial question of law. The court found that different estimation methodologies are merely various modes of calculating suppressed income, and since estimation involves guesswork, no single methodology can be deemed the only legally acceptable approach. The choice of estimation method depends on facts and circumstances of each case, particularly noting that for jewellery businesses with minimal stock differences, running stock basis may be unreliable. Regarding disallowance under section 40A(3), the court upheld the Tribunal's decision as the revenue had not previously appealed similar rulings. en-us Mon, 17 Feb 2025 00:00:00 +0530 Sat, 12 Apr 2025 09:28:40 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=768745 The Kerala HC held that the Appellate Tribunal's rejection of the running stock method for estimating sales turnover did not raise a substantial question of law. The court found that different estimation methodologies are merely various modes of calculating suppressed income, and since estimation involves guesswork, no single methodology can be deemed the only legally acceptable approach. The choice of estimation method depends on facts and circumstances of each case, particularly noting that for jewellery businesses with minimal stock differences, running stock basis may be unreliable. Regarding disallowance under section 40A(3), the court upheld the Tribunal's decision as the revenue had not previously appealed similar rulings. Case-Laws Income Tax Mon, 17 Feb 2025 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=768745