https://www.taxtmi.com/caselaws?id=785218 Whether AO could reject books of account solely for non-maintenance of an item-wise/month-wise stock register and estimate gross profit. The Tribunal held that where audited books, year-end physical verification and valuation of closing stock exist, and no finding of inflated purchases, suppressed sales or off-book transactions is recorded, mere non-maintenance of a particular stock register format (impracticable given business nature and multiplicity of items) does not justify rejection under section 145; estimation of gross profit at 11% was arbitrary. Consequently the rejection was unsustainable and the addition based on estimated gross profit was deleted and the appeal allowed. en-us Tue, 16 Dec 2025 00:00:00 +0530 Tue, 20 Jan 2026 06:31:14 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=785218 Whether AO could reject books of account solely for non-maintenance of an item-wise/month-wise stock register and estimate gross profit. The Tribunal held that where audited books, year-end physical verification and valuation of closing stock exist, and no finding of inflated purchases, suppressed sales or off-book transactions is recorded, mere non-maintenance of a particular stock register format (impracticable given business nature and multiplicity of items) does not justify rejection under section 145; estimation of gross profit at 11% was arbitrary. Consequently the rejection was unsustainable and the addition based on estimated gross profit was deleted and the appeal allowed. Case-Laws Income Tax Tue, 16 Dec 2025 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=785218