https://www.taxtmi.com/caselaws?id=445845 The ITAT Ahmedabad held that the CIT(A)'s estimation of 95% net profit from cheque discounting business was unjustified and bad in law. The tribunal noted that the same AO had accepted net profit rates of 9.50% to 12.50% for a similar group company's cheque discounting business. The assessee maintained proper records of commission income and payments to other shroffs. Following the precedent in Dahyalal I. Thakkar case, the tribunal directed the AO to allow expenditure at 25% of gross commission income, rejecting the CIT(A)'s finding of insufficient documentary evidence as the assessee had adequately explained their business operations. en-us Fri, 01 Sep 2023 00:00:00 +0530 Mon, 20 Nov 2023 21:13:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=445845 The ITAT Ahmedabad held that the CIT(A)'s estimation of 95% net profit from cheque discounting business was unjustified and bad in law. The tribunal noted that the same AO had accepted net profit rates of 9.50% to 12.50% for a similar group company's cheque discounting business. The assessee maintained proper records of commission income and payments to other shroffs. Following the precedent in Dahyalal I. Thakkar case, the tribunal directed the AO to allow expenditure at 25% of gross commission income, rejecting the CIT(A)'s finding of insufficient documentary evidence as the assessee had adequately explained their business operations. Case-Laws Income Tax Fri, 01 Sep 2023 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=445845