https://www.taxtmi.com/caselaws?id=759200 The ITAT Nagpur upheld CIT(A)'s decision reducing profit estimation from 8% to 4% on unaccounted turnover for a Kirana trading business, determining Rs. 35,70,673 as appropriate profit addition. The tribunal ruled that since assessee offered Rs. 75 lakh as additional business income, this amount should be telescoped with estimated profits, requiring no separate addition. ITAT dismissed Revenue's appeal regarding unexplained expenditure under section 69C, finding the addition based on estimates inappropriate as the provision requires actual expenditure. The tribunal also upheld deletion of separate additions for stock shortage, reasoning that once books are rejected and profit estimated, no additional profit estimation is warranted. All proposed additions by AO were quashed, with returned income remaining unchanged after considering the Rs. 75 lakh voluntary disclosure. en-us Mon, 02 Sep 2024 00:00:00 +0530 Wed, 18 Dec 2024 14:44:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=759200 The ITAT Nagpur upheld CIT(A)'s decision reducing profit estimation from 8% to 4% on unaccounted turnover for a Kirana trading business, determining Rs. 35,70,673 as appropriate profit addition. The tribunal ruled that since assessee offered Rs. 75 lakh as additional business income, this amount should be telescoped with estimated profits, requiring no separate addition. ITAT dismissed Revenue's appeal regarding unexplained expenditure under section 69C, finding the addition based on estimates inappropriate as the provision requires actual expenditure. The tribunal also upheld deletion of separate additions for stock shortage, reasoning that once books are rejected and profit estimated, no additional profit estimation is warranted. All proposed additions by AO were quashed, with returned income remaining unchanged after considering the Rs. 75 lakh voluntary disclosure. Case-Laws Income Tax Mon, 02 Sep 2024 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=759200