https://www.taxtmi.com/caselaws?id=769933 The ITAT Bangalore partly allowed the assessee's appeal against the AO's rejection of books of accounts and arbitrary profit estimation at 25% GP. The assessee, continuing his late father's contracting business, had declared 6.21% net profit and conducted 72% transactions through banking channels. The ITAT found the 25% GP estimation disproportionate given past profit margins and the labor-intensive nature of the business. Considering the business realities and previous year's similar ratios, the tribunal directed a reasonable net profit estimation at 9% of gross receipts instead of the AO's excessive assessment. en-us Wed, 30 Apr 2025 00:00:00 +0530 Fri, 02 May 2025 10:22:02 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=769933 The ITAT Bangalore partly allowed the assessee's appeal against the AO's rejection of books of accounts and arbitrary profit estimation at 25% GP. The assessee, continuing his late father's contracting business, had declared 6.21% net profit and conducted 72% transactions through banking channels. The ITAT found the 25% GP estimation disproportionate given past profit margins and the labor-intensive nature of the business. Considering the business realities and previous year's similar ratios, the tribunal directed a reasonable net profit estimation at 9% of gross receipts instead of the AO's excessive assessment. Case-Laws Income Tax Wed, 30 Apr 2025 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=769933