Search and seizure: abatement of earlier search bars use of prior seized material in later search-based assessments; relief limited to new documents f...
Admission of additional evidence under remand rules must await a meaningful remand report; failure to do so breaches natural justice and mandates rema...
ITAT held that, in a best judgment assessment for gross profit estimation, the assessee's earlier year on identical facts provided the proper benchmark. The ad hoc estimation of income at 2 per cent of turnover was rejected because no distinguishing feature was shown, and income was directed to be computed at 0.40 per cent of gross sales. On the penalty issue, the Tribunal held that once substantial relief was granted in quantum and the basis of estimation was substituted, the foundation for penalty for inaccurate particulars did not survive. The penalty was therefore deleted.
ITAT held that, in a best judgment assessment for gross profit estimation, the assessee's earlier year on identical facts provided the proper benchmark. The ad hoc estimation of income at 2 per cent of turnover was rejected because no distinguishing feature was shown, and income was directed to be computed at 0.40 per cent of gross sales. On the penalty issue, the Tribunal held that once substantial relief was granted in quantum and the basis of estimation was substituted, the foundation for penalty for inaccurate particulars did not survive. The penalty was therefore deleted.
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