Reverse charge and assignment of royalty collection: exemption for excess royalty collectors subject to reconciliation; leaseholders remain liable und...
Authorization requirements for customs brokers and benami shipping bills: tribunal upholds licence revocation and penalties after COVID time limit fou...
Eligibility for notification exemption on imported fertilizers challenged; penalty, interest and confiscation set aside after voluntary payment and no...
Dominant issue was the appropriate profit rate for estimating business income where the first appellate authority recharacterised the income as business income and applied a higher estimated margin. The Tribunal held that, absent any distinguishing facts, abnormal features, or benchmarking with comparable businesses, estimation must remain reasonable and consistent with accepted past results. Since the taxpayer's 6% profit rate was aligned with earlier years' assessments accepted by the department, and the appellate authority provided no comparables or specific basis for enhancing it to 10%, the enhancement was unsustainable. The profit rate was directed to be taken at 6%, and the appeal was allowed. - ITAT
Dominant issue was the appropriate profit rate for estimating business income where the first appellate authority recharacterised the income as business income and applied a higher estimated margin. The Tribunal held that, absent any distinguishing facts, abnormal features, or benchmarking with comparable businesses, estimation must remain reasonable and consistent with accepted past results. Since the taxpayer's 6% profit rate was aligned with earlier years' assessments accepted by the department, and the appellate authority provided no comparables or specific basis for enhancing it to 10%, the enhancement was unsustainable. The profit rate was directed to be taken at 6%, and the appeal was allowed. - ITAT
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