https://www.taxtmi.com/caselaws?id=465288 ITAT Chennai partly allowed the assessee's appeal by reducing the estimated profit rate adopted in the remand block assessment from 8% to 5%. It held that the assessee's activities constituted a clandestine, almost unlawful, textile supply business under a Government scheme, with unreliable accounts and established bogus purchases and sales, justifying estimation rather than acceptance of the declared 2.5% profit. However, ITAT accepted that profit margins in uniform cloth under Government schemes are typically lower than in general textiles. Considering the earlier excessive 120% estimate already reduced by the Assessing Officer, ITAT concluded that 8% remained slightly excessive and that a 5% profit rate would constitute a fair and reasonable estimate of undisclosed income. en-us Wed, 21 Sep 2011 00:00:00 +0530 Mon, 15 Dec 2025 14:05:39 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=465288 ITAT Chennai partly allowed the assessee's appeal by reducing the estimated profit rate adopted in the remand block assessment from 8% to 5%. It held that the assessee's activities constituted a clandestine, almost unlawful, textile supply business under a Government scheme, with unreliable accounts and established bogus purchases and sales, justifying estimation rather than acceptance of the declared 2.5% profit. However, ITAT accepted that profit margins in uniform cloth under Government schemes are typically lower than in general textiles. Considering the earlier excessive 120% estimate already reduced by the Assessing Officer, ITAT concluded that 8% remained slightly excessive and that a 5% profit rate would constitute a fair and reasonable estimate of undisclosed income. Case-Laws Income Tax Wed, 21 Sep 2011 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=465288