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2014 (10) TMI 709 - HC - Income TaxRejection of books of accounts - Addition u/s 40A(3) Computation of income as per GP rate Held that:- When the income of the assessee was computed by applying gross profit rate, there is no need to look into the provisions of Section 40A(3) of the Act, inasmuch as that, when the gross profit rate is applied, then it takes care of the expenditure otherwise by way of crossed cheques - once books of accounts are rejected, no further disallowance can be made relying upon Commissioner of Income-Tax. Versus Smt. Santosh Jain [2006 (8) TMI 167 - PUNJAB AND HARYANA High Court] - the provisions of Section 40(3) of the Act could not be invoked in the estimation of gross profit thus, the discretion exercised by the Tribunal is based on relevant consideration and does not suffer from any legal infirmity as such no substantial question of law would arise for determination Decided against revenue.
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