https://www.taxtmi.com/caselaws?id=768626 The ITAT Hyderabad held that the AO cannot reject books of accounts merely for unsubstantiated loss claims when other evidence proves the books are verifiable and contain no adverse comments from AO or auditor. The AO's estimation of 6% profit on total contract receipts lacked valid reasoning, particularly when the assessee's financial results showed 4.1% to 5% profit margins and the AO had previously accepted similar results. The tribunal directed the AO to estimate 5% profit on total contract receipts, consistent with earlier assessment years, and allowed the assessee's appeal. en-us Mon, 07 Apr 2025 00:00:00 +0530 Thu, 10 Apr 2025 08:32:54 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=768626 The ITAT Hyderabad held that the AO cannot reject books of accounts merely for unsubstantiated loss claims when other evidence proves the books are verifiable and contain no adverse comments from AO or auditor. The AO's estimation of 6% profit on total contract receipts lacked valid reasoning, particularly when the assessee's financial results showed 4.1% to 5% profit margins and the AO had previously accepted similar results. The tribunal directed the AO to estimate 5% profit on total contract receipts, consistent with earlier assessment years, and allowed the assessee's appeal. Case-Laws Income Tax Mon, 07 Apr 2025 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=768626