Rejection of books of accounts based on insignificant defects is unjustifiable

ACIT Vs Motisons Jewellers Ltd. (ITAT Jaipur) ITAT Jaipur held that rejection of books of account on the basis of insignificant defects is unjustified as Before invoking provisions of section 145(3) AO has to bring on record material the basis on which he has arrived at the conclusion with regard to correctness/ completeness of the accounts. Facts- AO observed that since in the instant case books of accounts are rejected as discussed above, therefore, keeping in view various jurisprudences hodling that part history is the best guiding factor to determine taxable profit in cases where books of ...