No disallowance U/s. 40(a)(ia) where net profit was estimated

Power Liners Vs. ACIT (ITAT Jaipur)

Once the income of the assessee was estimated after rejection of books of account, then, the AO could not make disallowance on the same books of account for the purpose of disallowance by invoking provisions of section 40(a)(ia) or general disallowance under section 37(1) of Income Tax Act, 1961. Hence, the disallowance made by the AO was deleted.

FULL TEXT OF THE ITAT JUDGMENT

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