https://www.taxtmi.com/caselaws?id=345899 HC upheld ITAT's deletion of additions made by AO, holding that invocation of Section 145 and re-computation under Section 80-IA(8) and (10) were unjustified. The AO had arbitrarily substituted lower gross profit rates and rejected audited accounts without identifying specific defects or providing a reasonable basis as required by the statute. Mere comparison of profits between the Baddi and Delhi units and reliance on related-party sales were held insufficient to displace the declared results. HC ruled that ITAT correctly found the AO's order to be based on conjectures and surmises, and consequently decided the appeal in favour of the assessee. en-us Mon, 24 Jul 2017 00:00:00 +0530 Fri, 05 Dec 2025 13:25:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=345899 HC upheld ITAT's deletion of additions made by AO, holding that invocation of Section 145 and re-computation under Section 80-IA(8) and (10) were unjustified. The AO had arbitrarily substituted lower gross profit rates and rejected audited accounts without identifying specific defects or providing a reasonable basis as required by the statute. Mere comparison of profits between the Baddi and Delhi units and reliance on related-party sales were held insufficient to displace the declared results. HC ruled that ITAT correctly found the AO's order to be based on conjectures and surmises, and consequently decided the appeal in favour of the assessee. Case-Laws Income Tax Mon, 24 Jul 2017 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=345899