HC Upholds Estimated Income at Average Rate of Last 3 FY After Book Rejection

GNG Exports Vs ACIT (Calcutta High Court) Calcutta High Court has upheld the estimation of income at an average rate derived from the previous three financial years in the case of GNG Exports versus the Assistant Commissioner of Income Tax. The court’s decision on October 8, 2024, came after the Income Tax Appellate Tribunal (ITAT) dismissed the assessee’s appeal for the assessment year 2013-14. This ruling reinforces the practice of income estimation even when the initial rejection of books of account by the Assessing Officer (AO) is deemed untenable. The core of the dispute arose...