In absence of rejection of Books, addition on estimate basis cannot be made

Hon’ble Supreme Court in the case of Sargam Talkies (refer to supra) clearly shows that in absence of rejection of books of account maintained by the assessee in respect of cost of construction, no addition on estimate basis can be made. In the present case, a perusal of the assessment order clearly shows that the books of account in respect of cost of construction of the lodge, Dhruva Tara has not been rejected. In the circumstances, we are of the view that in view of principle laid down by the Hon’ble Supreme Court in the case of Sargam Talkies (refer to supra), no addition is called for...