Estimation of NP: Separate addition for creditors & Loan cannot be done

Shrinet & Shandilya Construction (P) Ltd. Vs Addl. CIT & DCIT (ITAT Delhi) Once the trading results and books of accounts have been rejected and income is being estimated by applying net profit rate on the declared gross contract receipt, then no other addition is required to be made on account of any other trading items including the trade creditors or any other direct expenses as well as trading liabilities shown in the accounts. The reason being that, when the books of accounts are rejected and income is assessed on the principle of cbest judgment assessment’, then entries of ...