https://www.taxtmi.com/caselaws?id=775701 The dominant issue was whether rejection of books and best-judgment estimation of profit at 10% of turnover under s. 144 r.w. s. 144B was legally sustainable. The ITAT held that the AO neither identified specific defects in the audited books nor pointed out discrepancies in the documents furnished, and failed to rebut the assessee's explanations. The ITAT further found the assessment approach internally inconsistent: the AO doubted genuineness of purchases and sales yet simultaneously accepted the declared sales turnover to compute business income, rendering the estimation arbitrary and without evidentiary basis. Consequently, the addition based on 10% profit estimation was deleted and the appeal was allowed. en-us Wed, 04 Jun 2025 00:00:00 +0530 Thu, 08 Jan 2026 13:22:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=775701 The dominant issue was whether rejection of books and best-judgment estimation of profit at 10% of turnover under s. 144 r.w. s. 144B was legally sustainable. The ITAT held that the AO neither identified specific defects in the audited books nor pointed out discrepancies in the documents furnished, and failed to rebut the assessee's explanations. The ITAT further found the assessment approach internally inconsistent: the AO doubted genuineness of purchases and sales yet simultaneously accepted the declared sales turnover to compute business income, rendering the estimation arbitrary and without evidentiary basis. Consequently, the addition based on 10% profit estimation was deleted and the appeal was allowed. Case-Laws Income Tax Wed, 04 Jun 2025 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=775701