https://www.taxtmi.com/caselaws?id=763841 ITAT Chennai held that for unaccounted gold purchases, a reasonable gross profit rate of 2% should be applied instead of the AO's 12% net profit rate or 8.49% gross profit rate, considering the nature of the business. The tribunal directed deletion of disallowance under section 40A(3) as income was assessed on flat profit rate basis without claiming purchase deductions. The matter regarding excess stock addition was remanded to AO for fresh verification of invoices and correlation with stock levels. en-us Wed, 06 Nov 2024 00:00:00 +0530 Mon, 30 Dec 2024 08:39:20 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=763841 ITAT Chennai held that for unaccounted gold purchases, a reasonable gross profit rate of 2% should be applied instead of the AO's 12% net profit rate or 8.49% gross profit rate, considering the nature of the business. The tribunal directed deletion of disallowance under section 40A(3) as income was assessed on flat profit rate basis without claiming purchase deductions. The matter regarding excess stock addition was remanded to AO for fresh verification of invoices and correlation with stock levels. Case-Laws Income Tax Wed, 06 Nov 2024 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=763841