https://www.taxtmi.com/caselaws?id=790563 Books of account supported by quantitative details cannot be rejected under section 145(3) unless the stated defects are actually established on record. Here, the alleged excess purchases from a sister concern did not justify rejection because the sister concern's sales had been accepted in its own assessment and deduction under section 80IC had been granted; the rejection was therefore bad in law. Once rejection failed, an ad hoc gross profit addition based on the surrender of excess stock could not be sustained, and the surrendered stock had to be reflected in trading results in accordance with accepted accounting principles. The estimated addition was accordingly deleted. en-us Fri, 24 Apr 2026 00:00:00 +0530 Mon, 27 Apr 2026 08:21:47 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=790563 Books of account supported by quantitative details cannot be rejected under section 145(3) unless the stated defects are actually established on record. Here, the alleged excess purchases from a sister concern did not justify rejection because the sister concern's sales had been accepted in its own assessment and deduction under section 80IC had been granted; the rejection was therefore bad in law. Once rejection failed, an ad hoc gross profit addition based on the surrender of excess stock could not be sustained, and the surrendered stock had to be reflected in trading results in accordance with accepted accounting principles. The estimated addition was accordingly deleted. Case-Laws Income Tax Fri, 24 Apr 2026 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=790563