S. N. NAMASIVAYAM CHETTIAR vs THE COMMISSIONER OF INCOME-TAX,MADRAS(With connected appea

The Supreme Court upheld the Income Tax Officer's rejection of the appellant's accounts under the Indian Income-tax Act, 1922, specifically citing Section 13 Proviso. The Court ruled that the absence of a stock register justified the estimation of profits, as it was essential for verifying accounts. The Court clarified that the percentage of profits from other cases was not the primary basis for the Tribunal's conclusion but served as ancillary support, thus distinguishing it from Dhakeshwari Cotton Mills Ltd. v. The Commissioner of Income-tax, West Bengal.