https://www.taxtmi.com/caselaws?id=462779 The ITAT Delhi upheld CIT(A)'s deletion of additions made by AO. Regarding 7% net profit estimation on contractual receipts, the tribunal found AO's rejection of books unjustified as assessee's gross profit rate (12.30%) was comparable to previous year (12.32%) accepted by department. AO provided no basis for 7% rate or comparable cases. Cash payments were explained as necessary due to illiterate workforce for wages and transportation. For 50% disallowance of sundry creditors, CIT(A) correctly noted assessee furnished confirmations for over 97% of outstanding amounts, making AO's adhoc addition unjustified when purchases were accepted. en-us Wed, 11 Jul 2018 00:00:00 +0530 Tue, 15 Jul 2025 19:09:38 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=462779 The ITAT Delhi upheld CIT(A)'s deletion of additions made by AO. Regarding 7% net profit estimation on contractual receipts, the tribunal found AO's rejection of books unjustified as assessee's gross profit rate (12.30%) was comparable to previous year (12.32%) accepted by department. AO provided no basis for 7% rate or comparable cases. Cash payments were explained as necessary due to illiterate workforce for wages and transportation. For 50% disallowance of sundry creditors, CIT(A) correctly noted assessee furnished confirmations for over 97% of outstanding amounts, making AO's adhoc addition unjustified when purchases were accepted. Case-Laws Income Tax Wed, 11 Jul 2018 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=462779