Acceptance or Rejection of Books: An Analysis

Acceptance or rejection of books can greatly affect the determination of income for a tax payer in taxation. This decision is made based on factors such as the method of accounting used and the completeness and accuracy of records the revenue department has asked for. We shall therefore examine case law and precedents to find out some of these fine points that are involved in making this very important part of tax assessment. Grounds for Rejection: Under Section 145(3) of the Income Tax Act, the Assessing Officer (AO) has the authority to reject books of account if they are found to be incorre...