Bangalore ITAT: No 40A(3) Disallowance on Mere Assumptions- Profit Estimation Without Rejecting Books Quashed

Gajanana Shamanna Talageri Vs ITO (ITAT Bangalore) Bangalore ITAT: No 40A(3) Disallowance on Mere Assumptions- Profit Estimation Without Rejecting Books Quashed The Bangalore ITAT deleted additions made under Section 40A(3) and on account of estimated profit, holding that the Assessing Officer cannot make disallowances merely on assumptions or estimate profits without first rejecting the books of account. The assessee, engaged in granite quarrying and trading, had faced reassessment proceedings wherein the AO alleged cash purchases beyond the permissible limit and also estimated net profit at ...