https://www.taxtmi.com/caselaws?id=445046 ITAT Delhi dismissed revenue's appeal challenging CIT(A)'s order rejecting AO's estimation of net profit at 5.206%. AO had rejected assessee's books under Section 145(3) alleging manipulation through deflated partner remuneration and inflated expenses to compensate for surrendered income during survey. ITAT held books cannot be rejected without cogent reasons or material pointing to falsehood. Mere decline in net profit or partner remuneration decisions cannot justify book rejection. CIT(A) properly examined transactions causing lower profits and accepted assessee's explanation, while AO relied only on statistical parameters, which was unsustainable. en-us Tue, 10 Oct 2023 00:00:00 +0530 Tue, 02 Jan 2024 10:30:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=445046 ITAT Delhi dismissed revenue's appeal challenging CIT(A)'s order rejecting AO's estimation of net profit at 5.206%. AO had rejected assessee's books under Section 145(3) alleging manipulation through deflated partner remuneration and inflated expenses to compensate for surrendered income during survey. ITAT held books cannot be rejected without cogent reasons or material pointing to falsehood. Mere decline in net profit or partner remuneration decisions cannot justify book rejection. CIT(A) properly examined transactions causing lower profits and accepted assessee's explanation, while AO relied only on statistical parameters, which was unsustainable. Case-Laws Income Tax Tue, 10 Oct 2023 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=445046