Income Estimation Invalid Without Invoking S.145 and Rejecting Books of Account: ITAT

The ITAT (Income Tax Appellate Tribunal) ruled that "income estimation is invalid without invoking Section 145 and rejecting books of account." Section 145 allows the Assessing Officer to estimate income if the books of account are not properly maintained or are unreliable. The tribunal emphasized that an arbitrary estimation of income cannot be made by the AO unless the books of accounts are formally rejected after recording reasons, and the provisions of Section 145 are duly invoked. This ensures procedural compliance and prevents arbitrary additions to income.