https://www.taxtmi.com/caselaws?id=773373 The Income Tax Appellate Tribunal partly allowed the assessee's appeal challenging an income addition of Rs. 8,14,221. The AO had arbitrarily estimated income at 10% net profit rate despite proposing 8% in the show cause notice. The Tribunal found this unsustainable, noting the assessee dealt in perishable commodities which typically yield lower margins. Relying on precedent establishing 4% as reasonable for similar businesses, and balancing the AO's proposed 8%, the Tribunal directed reassessment applying 5% net profit rate, recognizing the need for reasonable estimation despite the assessee's failure to maintain books of account. en-us Thu, 19 Jun 2025 00:00:00 +0530 Sat, 21 Jun 2025 08:29:09 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=773373 The Income Tax Appellate Tribunal partly allowed the assessee's appeal challenging an income addition of Rs. 8,14,221. The AO had arbitrarily estimated income at 10% net profit rate despite proposing 8% in the show cause notice. The Tribunal found this unsustainable, noting the assessee dealt in perishable commodities which typically yield lower margins. Relying on precedent establishing 4% as reasonable for similar businesses, and balancing the AO's proposed 8%, the Tribunal directed reassessment applying 5% net profit rate, recognizing the need for reasonable estimation despite the assessee's failure to maintain books of account. Case-Laws Income Tax Thu, 19 Jun 2025 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=773373