https://www.taxtmi.com/caselaws?id=769304 ITAT Delhi ruled in favor of assessee in income estimation dispute. Revenue rejected books under section 145(3) due to discrepancies and applied 12.5% GP rate on Form 26AS receipts. ITAT held rejection improper given assessee's consistent 10.64% GP and 5% net profit history in contracting business. Tribunal directed income estimation at 7% of reconciled gross receipts (5% historical rate plus 2% for incomplete books) instead of 12.5%. Separate disallowance of sundry creditors was dismissed, following Allahabad HC precedent that no further disallowances permitted after book rejection and income estimation. Department's appeal partially dismissed, assessee's cross-objection partly allowed. en-us Mon, 21 Apr 2025 00:00:00 +0530 Wed, 23 Apr 2025 09:09:32 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=769304 ITAT Delhi ruled in favor of assessee in income estimation dispute. Revenue rejected books under section 145(3) due to discrepancies and applied 12.5% GP rate on Form 26AS receipts. ITAT held rejection improper given assessee's consistent 10.64% GP and 5% net profit history in contracting business. Tribunal directed income estimation at 7% of reconciled gross receipts (5% historical rate plus 2% for incomplete books) instead of 12.5%. Separate disallowance of sundry creditors was dismissed, following Allahabad HC precedent that no further disallowances permitted after book rejection and income estimation. Department's appeal partially dismissed, assessee's cross-objection partly allowed. Case-Laws Income Tax Mon, 21 Apr 2025 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=769304