ITAT Upholds Book Rejection Due to Defective Vouchers but Reduces Profit Estimation to 5%

Envista Engineering & Construction Private Limited Vs ACIT (ITAT Chennai) Summary: The ITAT Chennai held that rejection of books under Section 145(3) was justified where the assessee failed to maintain reliable and verifiable records. The Assessing Officer noted that major expenses were supported only by self-made cash vouchers, with no third-party confirmations, project-wise details, or reconciliations, and the assessee also failed to respond adequately to notices. Accordingly, the books were rejected and profit was estimated at 8% of turnover. While upholding rejection of books, the Tri...