AO cannot resort to estimation of gross or net profit without rejecting books

ACIT Vs Bokaro Power Supply Company Pvt. Ltd. (ITAT Delhi) In a recent case of ACIT Vs Bokaro Power Supply Company Pvt. Ltd., adjudicated by the Income Tax Appellate Tribunal (ITAT) Delhi, significant clarifications were provided regarding the taxation of interest earned on business deposits and the authority of Assessing Officers (AO) to estimate gross profit. The dispute centered around the treatment of interest earned on margin money deposits and advances, with the Revenue contesting its inclusion in the Expenditure during Construction Period. The Tribunal referenced previous decisions, inc...