https://www.taxtmi.com/caselaws?id=796485 Income cannot be estimated solely from a reduced profit ratio where regularly maintained, audited books are accepted, no defects are identified, and the books are not rejected under section 145(3). The notes state that lower profitability was explained by business conditions, sales returns and unusual prior-year margins. Dealer scheme expenses are also supportable where scheme records, transaction-wise workings, credit notes, invoices, ledgers, confirmations and evidence of later settlement or reversal establish a direct nexus with relevant-year sales. On the stated analysis, both the low-profit addition and dealer scheme expense disallowance were deleted because the Revenue did not rebut the supporting factual material. en-us Wed, 14 Jan 2026 00:00:00 +0530 Thu, 06 Aug 2026 09:11:11 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=796485 Income cannot be estimated solely from a reduced profit ratio where regularly maintained, audited books are accepted, no defects are identified, and the books are not rejected under section 145(3). The notes state that lower profitability was explained by business conditions, sales returns and unusual prior-year margins. Dealer scheme expenses are also supportable where scheme records, transaction-wise workings, credit notes, invoices, ledgers, confirmations and evidence of later settlement or reversal establish a direct nexus with relevant-year sales. On the stated analysis, both the low-profit addition and dealer scheme expense disallowance were deleted because the Revenue did not rebut the supporting factual material. Case-Laws Income Tax Wed, 14 Jan 2026 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=796485