Court held that once the books of account were rejected and the profit was estimated at 8 per cent. of the turnover, the books of account could not be relied upon for the purpose of making addition under the provisions of S. 40 of the Act . (AY. 2004 -05)
ACIT v. Salauddin. (2019) 414 ITR 335 (Pat.)(HC)
S. 40(a)(ia) : Amounts not deductible-Deduction at source- Rejection of Books of account-Estimation of profit @ 8% of turnover—No disallowance can be made u/s. 40 of the Act. [S. 145(3)]
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