https://www.taxtmi.com/caselaws?id=470324 A disclosed gross-profit rate cannot be replaced with the preceding year's rate merely because it has declined. Book results may be rejected and profits estimated only where substantive material establishes defects in the accounts, unreliable purchases, spurious entries, or other grounds undermining their reliability. General allegations concerning stock records, closing-stock valuation, bought-note purchases, and invisible loss were insufficient, particularly where no enquiry tested the explanation that changes in input prices and cotton mix caused the lower margin. The gross-profit additions were therefore unsustainable, and the Tribunal's order was set aside in favour of the assessee. en-us Wed, 01 Jan 2014 00:00:00 +0530 Thu, 23 Jul 2026 14:20:03 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=470324 A disclosed gross-profit rate cannot be replaced with the preceding year's rate merely because it has declined. Book results may be rejected and profits estimated only where substantive material establishes defects in the accounts, unreliable purchases, spurious entries, or other grounds undermining their reliability. General allegations concerning stock records, closing-stock valuation, bought-note purchases, and invisible loss were insufficient, particularly where no enquiry tested the explanation that changes in input prices and cotton mix caused the lower margin. The gross-profit additions were therefore unsustainable, and the Tribunal's order was set aside in favour of the assessee. Case-Laws Income Tax Wed, 01 Jan 2014 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=470324