https://www.taxtmi.com/caselaws?id=461198 The ITAT Chennai reduced the income estimation from 8% to 5% of contract receipts for an assessee who maintained no books of accounts and filed returns at 1.5% of gross turnover. The AO had estimated income at 8% citing precedent, while the assessee's representative argued for 3.5% profit margin typical in similar businesses. The ITAT found 5% reasonable considering the turnover exceeding 4 crores and nature of business, noting section 44AD was inapplicable. The appeals were partly allowed in favor of the assessee. en-us Wed, 31 Jul 2024 00:00:00 +0530 Thu, 20 Mar 2025 17:54:08 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=461198 The ITAT Chennai reduced the income estimation from 8% to 5% of contract receipts for an assessee who maintained no books of accounts and filed returns at 1.5% of gross turnover. The AO had estimated income at 8% citing precedent, while the assessee's representative argued for 3.5% profit margin typical in similar businesses. The ITAT found 5% reasonable considering the turnover exceeding 4 crores and nature of business, noting section 44AD was inapplicable. The appeals were partly allowed in favor of the assessee. Case-Laws Income Tax Wed, 31 Jul 2024 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=461198