https://www.taxtmi.com/caselaws?id=761654 The ITAT Delhi reduced the profit estimation from 12.5% to 8% of gross receipts for an advertisement business assessment. The assessee argued that advertisement business operates on thin margins of 1.5-2%, but failed to provide adequate supporting evidence. The CIT(A) had applied 12.5% estimation without proper justification. The ITAT relied on Section 44AD's statutory presumption of 8% profit on turnover, considering it a fair estimation based on legislative empirical studies. The tribunal found 8% more reasonable given the comparable data showing lower profit margins in similar businesses, partially allowing the assessee's appeal. en-us Tue, 12 Nov 2024 00:00:00 +0530 Thu, 14 Nov 2024 08:26:28 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=761654 The ITAT Delhi reduced the profit estimation from 12.5% to 8% of gross receipts for an advertisement business assessment. The assessee argued that advertisement business operates on thin margins of 1.5-2%, but failed to provide adequate supporting evidence. The CIT(A) had applied 12.5% estimation without proper justification. The ITAT relied on Section 44AD's statutory presumption of 8% profit on turnover, considering it a fair estimation based on legislative empirical studies. The tribunal found 8% more reasonable given the comparable data showing lower profit margins in similar businesses, partially allowing the assessee's appeal. Case-Laws Income Tax Tue, 12 Nov 2024 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=761654