'Benign Assessment Procedure' for assessees engaged in diamond manufacturing and/or trading.

Benign Assessment Procedure for diamond businesses permits acceptance of declared trading profit at a prescribed percentage of turnover.

The Benign Assessment Procedure for diamond manufacturing and trading directs acceptance of declared trading profits where an assessee reports income equal to or higher than 6% of turnover for that business in an assessment year. Assessees must maintain separate books of accounts. Acceptance at that rate for a year is not precedent. The procedure is excluded where assessment follows search, requisition or survey actions, where substantial deductions are claimed under specified chapters, or where information of escapement exists. The prescribed rate will be reviewed annually and the instruction is issued under the administrative power in the Income-tax Act.