Rejection of Books of Accounts is Pre-Requisite As Per Section 145(3) For Making an Assessment Under Section 144

Section 145 of the Income Tax Act, 1961 (for short ‘the Act’) deals with the method of accounting of an assessee. According to sub-section (3) of section 145 of the Act, where the Assessing Officer (AO) is not satisfied about the correctness or completeness of the accounts of the assessee, or where the method of accounting provided in sub-section (1) has not been regularly followed by the assessee, or income has not been computed in accordance with the standards notified under sub-section (2), the AO may make an assessment in the manner provided in section 144 of the Act.

Please become a Premium member. If you are already a Premium member, login here to access the full content.