{"id":59535,"date":"2026-04-17T12:02:46","date_gmt":"2026-04-17T06:32:46","guid":{"rendered":"https:\/\/itatonline.org\/digest\/skyscraper-projects-p-ltd-v-acit-2025-306-taxman-169-cal-hc\/"},"modified":"2026-04-17T12:02:46","modified_gmt":"2026-04-17T06:32:46","slug":"skyscraper-projects-p-ltd-v-acit-2025-306-taxman-169-cal-hc","status":"publish","type":"post","link":"https:\/\/itatonline.org\/digest\/skyscraper-projects-p-ltd-v-acit-2025-306-taxman-169-cal-hc\/","title":{"rendered":"Skyscraper Projects (P.) Ltd. v. ACIT (2025) 306 Taxman 169 (Cal.)(HC)"},"content":{"rendered":"<p>During the assessment proceedings, the AO\u00a0rejected the books of account and estimated the\u00a0<strong>net profit<\/strong>. However, while computing the tax liability, the AO also made an addition under\u00a0<strong>section 43B<\/strong>, which allows deductions only on actual payment, and accordingly passed the assessment order under\u00a0<strong>section 143(3)<\/strong>. The\u00a0<strong>CIT(A)<\/strong>\u00a0held that once the income under the head\u00a0<em>Profits and Gains of Business or Profession<\/em>\u00a0is\u00a0<strong>estimated after rejection of the books of account<\/strong>, it is to be presumed that all provisions contained in\u00a0<strong>sections 29 to 43D<\/strong>\u00a0have been taken into account, and therefore\u00a0<strong>no further disallowance under section 43B<\/strong>\u00a0could be made. The High Court affirmed this principle and held that, where the\u00a0<strong>gross profit is estimated after rejection of the books<\/strong>, restoring the matter to the AO for further verification was\u00a0<strong>unnecessary and unwarranted<\/strong>. It was reiterated that once profits are determined on an estimated basis, the AO\u00a0<strong>cannot rely on the rejected books of account to make further disallowances<\/strong>. Accordingly, no interference was called for with the order of the Tribunal.\u00a0<em>(AY.2012-13)<\/em><\/p>\n","protected":false},"excerpt":{"rendered":"<p>S.43B: Deductions on actual payment-VAT-Service tax-Estimation of Profits-Rejection of Books of Account-Income estimated at 8%  No Further Disallowance Permissible.[S.144, 145]<\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[21],"tags":[],"class_list":["post-59535","post","type-post","status-publish","format-standard","hentry","category-income-tax-act"],"acf":[],"jetpack_featured_media_url":"","jetpack_shortlink":"https:\/\/wp.me\/p9S2Rw-fuf","jetpack-related-posts":[],"jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/59535","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/comments?post=59535"}],"version-history":[{"count":1,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/59535\/revisions"}],"predecessor-version":[{"id":59536,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/59535\/revisions\/59536"}],"wp:attachment":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/media?parent=59535"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/categories?post=59535"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/tags?post=59535"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}