Inventory write-off and fraudulent/wrongful trading allegations in corporate insolvency led to director liability principles applied and appeal dismis...
Condonation of delay in filing GSTR-3B returns and entitlement to Section 62 benefit results in withdrawal of assessments and revocation of attachment...
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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