https://www.taxtmi.com/caselaws?id=458099 ITAT Allahabad recalled its order for fresh adjudication after assessee challenged income estimation at 7.25% NP rate following book rejection. Assessee argued that preceding years' NP rates were inappropriate due to extraordinary expenditure items including demurrage charges. Tribunal held that CIT(A) should have examined whether these were revenue or capital items before using comparative rates. When extraordinary expenditure exists, income estimation must consider such items for reasonable basis. Case decided in assessee's favor with matter remanded for fresh hearing. en-us Wed, 27 Jan 2021 00:00:00 +0530 Tue, 08 Oct 2024 07:30:57 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=458099 ITAT Allahabad recalled its order for fresh adjudication after assessee challenged income estimation at 7.25% NP rate following book rejection. Assessee argued that preceding years' NP rates were inappropriate due to extraordinary expenditure items including demurrage charges. Tribunal held that CIT(A) should have examined whether these were revenue or capital items before using comparative rates. When extraordinary expenditure exists, income estimation must consider such items for reasonable basis. Case decided in assessee's favor with matter remanded for fresh hearing. Case-Laws Income Tax Wed, 27 Jan 2021 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=458099