https://www.taxtmi.com/caselaws?id=768983 ITAT Chennai upheld CIT(A)'s decision to reject assessee's books of accounts as unreliable after discovering parallel accounting systems during search operations. The tribunal estimated profits at 2.21% of turnover instead of 0.47% declared by assessee, following precedent from sister concern's case with identical circumstances. The court rejected Revenue's proposal for 53% profit rate and held that estimated income should subsume original assessment disallowances to avoid double addition. Additions for unaccounted sales were limited to 2.21% profit element, while unexplained expenditure additions were deleted as they were already subsumed in the profit estimation exercise. en-us Tue, 26 Nov 2024 00:00:00 +0530 Tue, 15 Apr 2025 10:26:44 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=768983 ITAT Chennai upheld CIT(A)'s decision to reject assessee's books of accounts as unreliable after discovering parallel accounting systems during search operations. The tribunal estimated profits at 2.21% of turnover instead of 0.47% declared by assessee, following precedent from sister concern's case with identical circumstances. The court rejected Revenue's proposal for 53% profit rate and held that estimated income should subsume original assessment disallowances to avoid double addition. Additions for unaccounted sales were limited to 2.21% profit element, while unexplained expenditure additions were deleted as they were already subsumed in the profit estimation exercise. Case-Laws Income Tax Tue, 26 Nov 2024 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=768983