M/S. KACHWALA GEMS vs JOINT COMMNR. OF INCOME TAX, JAIPUR

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 appellant failed to maintain quantitative details and provide evidence for the valuation of closing stock, leading to the conclusion of bogus purchases. The Court held that the assessment process involved necessary guesswork due to the appellant's inadequate record-keeping, and thus dismissed the appeal.