Books Can’t Be Rejected Merely for Profit Decline or No Stock: SC

PCIT-9 Vs IBILT Technologies Ltd. (Supreme Court of India) The Supreme Court dismissed the Revenue’s appeal arising from the assessment of IBILT Technologies Ltd. for Assessment Year 2007-08. The dispute concerned the Assessing Officer’s rejection of the assessee’s books of account under Section 145 of the Income-tax Act, 1961 and estimation of income by applying a gross profit rate of 4% after observing that the assessee had incurred a net loss of ₹16.41 lakh as against a profit of ₹1.34 crore in the preceding assessment year. The Assessing Officer rejected the assessee&...