2005 (8) TMI 93 - CALCUTTA HIGH COURT

Rejection of the books of accounts – calculation of gross profit - "Whether the Tribunal was justified in law in holding that the gross profit of the appellant for the assessment years 1990-91 and 1991-92 should be calculated at the gross profit of the AY 1989-90 at 18.71 per cent?" – The rejection of the books of account by the learned Tribunal was contrary to the proviso to section 145 unless there is a finding or opinion either that the records were incorrect and incomplete or that the method applied was such that the income could not be deduced from the accounts maintained by the assessee. - Held that account books could not be rejected merely on the ground that item-wise stock was not maintained in the stock register. - order of the learned Tribunal is hereby set aside.