https://www.taxtmi.com/caselaws?id=783258 ITAT Chennai partly allowed the assessee's appeal in respect of estimation of business income from advertisement services. It held that the AO's rejection of books and estimation of profit at 25% or 8% of undisclosed contract receipts was arbitrary, unsupported by comparable cases, industry data, or defects in accounts. Recognising that advertisement agencies operate on thin margins and noting the assessee's historical average margin of 3.5%, ITAT directed estimation of income at 5% of contract receipts as a fair and reasonable rate. ITAT further held that cash deposits were part of the same business receipts and deleted the separate addition to avoid double taxation. en-us Mon, 08 Dec 2025 00:00:00 +0530 Fri, 12 Dec 2025 08:55:17 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=783258 ITAT Chennai partly allowed the assessee's appeal in respect of estimation of business income from advertisement services. It held that the AO's rejection of books and estimation of profit at 25% or 8% of undisclosed contract receipts was arbitrary, unsupported by comparable cases, industry data, or defects in accounts. Recognising that advertisement agencies operate on thin margins and noting the assessee's historical average margin of 3.5%, ITAT directed estimation of income at 5% of contract receipts as a fair and reasonable rate. ITAT further held that cash deposits were part of the same business receipts and deleted the separate addition to avoid double taxation. Case-Laws Income Tax Mon, 08 Dec 2025 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=783258