https://www.taxtmi.com/caselaws?id=787221 An assessing officer may not resort to estimated additions by applying a gross profit rate to unrecorded sales without first rejecting the books of account and invoking best judgment assessment; the statutory precondition requiring rejection of accounts before proceeding to estimation must be observed, and selective estimation over entries recorded in the books is impermissible. Applying that legal principle, the estimation made without recording rejection of the books was unsustainable and was set aside in favour of the assessee, restoring reliance on the books for computation of income. en-us Mon, 23 Feb 2026 00:00:00 +0530 Wed, 25 Feb 2026 11:48:46 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=787221 An assessing officer may not resort to estimated additions by applying a gross profit rate to unrecorded sales without first rejecting the books of account and invoking best judgment assessment; the statutory precondition requiring rejection of accounts before proceeding to estimation must be observed, and selective estimation over entries recorded in the books is impermissible. Applying that legal principle, the estimation made without recording rejection of the books was unsustainable and was set aside in favour of the assessee, restoring reliance on the books for computation of income. Case-Laws Income Tax Mon, 23 Feb 2026 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=787221