M/S. Kachwala Gems, Jaipur vs Joint Commissioner Of Income Tax, ...

The Supreme Court upheld the rejection of the appellant's books of accounts under Section 145(3) of the Income Tax Act, affirming the Assessing Officer's best judgment assessment under Section 144. The Court found that the Income Tax Authorities provided cogent reasons for their findings, including the determination of bogus purchases and the estimation of Gross Profit rates. The appeal was dismissed, confirming that the assessment process involved necessary guesswork due to the appellant's failure to maintain proper accounts.