Excerpt: The computation under Section 29 is to be made under Section 145 on the basis of the books regularly maintained by the assessee. If those books are not correct or complete, the ITO may reject those books and estimate the income to the best of his judgment. When such an estimate is made, it is in substitution of … Continue reading If books are not correct or complete, the ITO may reject those books and estimate the income to the best of his judgment. When such an estimate is made, it is in substitution of the income that is to be computed under Section 29.
When there are certain other deductions which are to be disallowed such as wealth-tax payment in Section 40, can it be said that after making an estimate, the wealth-tax should again be added back to the profit, no its untenable.
Excerpt: When there are certain other deductions which are to be disallowed such as wealth-tax payment in Section 40, can it be said that after making an estimate, the wealth-tax charged in the profit and loss account should again be added back to the profit. This example illustrates how the contention of the Revenue, that Section 40(b) makes … Continue reading When there are certain other deductions which are to be disallowed such as wealth-tax payment in Section 40, can it be said that after making an estimate, the wealth-tax should again be added back to the profit, no its untenable.
sarvepalli legal 