Opportunity to furnish unsecured-loan confirmations is required before reassessment initiation; proceedings require fresh consideration after taxpayer...
Under-reporting on a first reassessment return attracts penalty, while enhanced misreporting penalty requires proof of a statutory misreporting catego...
ITAT allowed the assessee's appeal, rejecting the Assessing Officer's (AO) arbitrary estimation of gross profit. The tribunal found no material defects in the books of accounts, no evidence of sales suppression, and no new land purchases. The AO's rejection of accounts solely based on lower gross profit compared to previous years was deemed incorrect. Without comparable industry data or market survey to justify the 9.94% gross profit estimation, the tribunal concluded that the addition to income was unwarranted. The decision was consistent with prior scrutiny assessments where the assessee's returned income was accepted with minimal adjustments.
ITAT allowed the assessee's appeal, rejecting the Assessing Officer's (AO) arbitrary estimation of gross profit. The tribunal found no material defects in the books of accounts, no evidence of sales suppression, and no new land purchases. The AO's rejection of accounts solely based on lower gross profit compared to previous years was deemed incorrect. Without comparable industry data or market survey to justify the 9.94% gross profit estimation, the tribunal concluded that the addition to income was unwarranted. The decision was consistent with prior scrutiny assessments where the assessee's returned income was accepted with minimal adjustments.
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TaxTMI 
TaxTMI 
of 4915 
