Trademark depreciation and section 14A adjustments: ITAT applies consistency, independent book-profit computation, and no disallowance without exempt ...
Rebuttable search presumptions and corroboration standards shaped deletion of unsubstantiated additions, while rental income and limited profit estima...
The ITAT upheld rejection of the assessee's books of account under section 145(3) because verifiable labour records, third-party confirmations, project-wise details and reconciliations were not produced, and major expenses rested on self-made vouchers with no credible support. Once the accounts were rejected, profit had to be estimated on a fair and reasonable basis, but the Tribunal found the Assessing Officer's 8% rate excessive because it relied on non-comparable listed companies and a section 44AD benchmark that could not be mechanically applied beyond the prescribed turnover limit. Considering the nature of the sub-contract business, remote working conditions and defects in the records, profit was estimated at 5% of turnover.
The ITAT upheld rejection of the assessee's books of account under section 145(3) because verifiable labour records, third-party confirmations, project-wise details and reconciliations were not produced, and major expenses rested on self-made vouchers with no credible support. Once the accounts were rejected, profit had to be estimated on a fair and reasonable basis, but the Tribunal found the Assessing Officer's 8% rate excessive because it relied on non-comparable listed companies and a section 44AD benchmark that could not be mechanically applied beyond the prescribed turnover limit. Considering the nature of the sub-contract business, remote working conditions and defects in the records, profit was estimated at 5% of turnover.
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