https://www.taxtmi.com/caselaws?id=468769 Unrecorded cash sales were found from the assessee's records, but the material did not justify taxing the entire turnover as income. The applicable principle was that sales are gross receipts and only the profit element embedded in those receipts can be brought to tax unless the record shows that the whole amount represents income. Earlier-year results were used to estimate a reasonable gross profit rate, and the record did not establish that all related purchases and expenses had been fully accounted for. The addition was therefore confined to gross profit at 11.65% on the unrecorded sales, and the Revenue's challenge to taxing the full receipts failed. en-us Wed, 30 Oct 2024 00:00:00 +0530 Wed, 20 May 2026 09:38:27 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=468769 Unrecorded cash sales were found from the assessee's records, but the material did not justify taxing the entire turnover as income. The applicable principle was that sales are gross receipts and only the profit element embedded in those receipts can be brought to tax unless the record shows that the whole amount represents income. Earlier-year results were used to estimate a reasonable gross profit rate, and the record did not establish that all related purchases and expenses had been fully accounted for. The addition was therefore confined to gross profit at 11.65% on the unrecorded sales, and the Revenue's challenge to taxing the full receipts failed. Case-Laws Income Tax Wed, 30 Oct 2024 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=468769