https://www.taxtmi.com/caselaws?id=392003 In proceedings under section 263 of the Income-tax Act, 1961, the Tribunal upheld estimation of net profit at 8% on accounted contractual receipts based on the assessee's profit trend and comparable business results, with salary and interest on capital to partners allowed from the estimated profit. It also held that undisclosed contractual receipts cannot be taxed in full as income; only the profit element embedded in such receipts is taxable. On the unaccounted receipts, the Tribunal adopted a higher profit estimate of 16% after noting that the assessee had not been given full opportunity to substantiate the claimed undisclosed expenditure, resulting in partial relief. en-us Mon, 20 Jan 2020 00:00:00 +0530 Tue, 11 Feb 2020 19:55:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=392003 In proceedings under section 263 of the Income-tax Act, 1961, the Tribunal upheld estimation of net profit at 8% on accounted contractual receipts based on the assessee's profit trend and comparable business results, with salary and interest on capital to partners allowed from the estimated profit. It also held that undisclosed contractual receipts cannot be taxed in full as income; only the profit element embedded in such receipts is taxable. On the unaccounted receipts, the Tribunal adopted a higher profit estimate of 16% after noting that the assessee had not been given full opportunity to substantiate the claimed undisclosed expenditure, resulting in partial relief. Case-Laws Income Tax Mon, 20 Jan 2020 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=392003