https://www.taxtmi.com/caselaws?id=446297 ITAT Jaipur allowed the assessee's appeal partly in a case involving bogus purchases in diamond business. The lower authorities estimated profit at 25% on tainted purchases, but ITAT reduced it to 6% considering the nature of diamond jewellery business where profit margins are thin due to competition. The tribunal noted that Board's instruction No. 2/2008 clarified 6% profit as desirable for diamond business. Since the assessee already disclosed 5.96% profit and no search was conducted, ITAT deemed 6% estimation appropriate against the lower authorities' 25% estimate. en-us Mon, 30 Oct 2023 00:00:00 +0530 Thu, 30 Nov 2023 07:02:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=446297 ITAT Jaipur allowed the assessee's appeal partly in a case involving bogus purchases in diamond business. The lower authorities estimated profit at 25% on tainted purchases, but ITAT reduced it to 6% considering the nature of diamond jewellery business where profit margins are thin due to competition. The tribunal noted that Board's instruction No. 2/2008 clarified 6% profit as desirable for diamond business. Since the assessee already disclosed 5.96% profit and no search was conducted, ITAT deemed 6% estimation appropriate against the lower authorities' 25% estimate. Case-Laws Income Tax Mon, 30 Oct 2023 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=446297