https://www.taxtmi.com/caselaws?id=801157 Section 145(3) permits rejection of accounts that are materially incorrect or incomplete; missing ledgers, stock and inventory records, trial balance and balance sheet prevent reliable determination of taxable profit. Following valid rejection, best-judgment net-profit estimation must rest on relevant material rather than unsupported ad hoc rates. The applicable rate requires recomputation using the average declared in the five immediately preceding years, excluding interest income, subject to prescribed benchmarks and special-audit findings. Interest on bank or financial-institution deposits and delayed customer instalments is taxable as income from other sources under Section 56(2), not business income, absent money-lending, financing or banking activity. en-us Tue, 22 Sep 2026 00:00:00 +0530 Fri, 16 Oct 2026 05:20:57 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=801157 Section 145(3) permits rejection of accounts that are materially incorrect or incomplete; missing ledgers, stock and inventory records, trial balance and balance sheet prevent reliable determination of taxable profit. Following valid rejection, best-judgment net-profit estimation must rest on relevant material rather than unsupported ad hoc rates. The applicable rate requires recomputation using the average declared in the five immediately preceding years, excluding interest income, subject to prescribed benchmarks and special-audit findings. Interest on bank or financial-institution deposits and delayed customer instalments is taxable as income from other sources under Section 56(2), not business income, absent money-lending, financing or banking activity. Case-Laws Income Tax Tue, 22 Sep 2026 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=801157