#Estimation of Income

ITAT Delhi sets aside income tax assessment under Section 144, ruling that estimation of income based on unverified subscriber data violates statutory requirements. The decision reinforces that tax authorities must conduct thorough verification before resorting to best judgment assessment, impacting cable operators and similar service providers facing tax disputes.

ITAT Agra holds that under Section 145(3) of the Income-tax Act, the Assessing Officer cannot partially reject books of accounts; if rejected, net profit must be estimated on the entire turnover. This ruling reinforces the strict interpretation of the provision, impacting taxpayers whose books are scrutinized for defects.