https://www.taxtmi.com/caselaws?id=798840 Gross-profit estimation requires a reasoned rejection of books of account founded on cogent grounds and material defects before profits may be estimated. A decline in the gross-profit ratio alone does not justify an addition where adverse market conditions, reduced production and sales, and continuing fixed overheads explain lower profitability. Gross-profit examination also falls outside limited scrutiny confined to tax deduction or deposit defaults and related business loss unless the prescribed conversion to complete scrutiny is validly made. The gross-profit addition was therefore deleted, with consequential relief required. en-us Wed, 09 Sep 2026 00:00:00 +0530 Sat, 12 Sep 2026 08:41:34 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=798840 Gross-profit estimation requires a reasoned rejection of books of account founded on cogent grounds and material defects before profits may be estimated. A decline in the gross-profit ratio alone does not justify an addition where adverse market conditions, reduced production and sales, and continuing fixed overheads explain lower profitability. Gross-profit examination also falls outside limited scrutiny confined to tax deduction or deposit defaults and related business loss unless the prescribed conversion to complete scrutiny is validly made. The gross-profit addition was therefore deleted, with consequential relief required. Case-Laws Income Tax Wed, 09 Sep 2026 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=798840