https://www.taxtmi.com/caselaws?id=784227 Whether income could be estimated at 1% of turnover after rejection of books under s.145(3) turned on the evidentiary basis for the rate adopted. The Tribunal held that the AO's 1% estimate rested on mere observation that similar businesses show 0.8%-1.25% profit, without any cogent material or proper comparability analysis, rendering the estimation ad hoc and presumptive; consequently, the estimate at 1% was set aside. Given that the assessee's manufacturing activity was not disputed and its past average net profit was about 0.4%, the Tribunal applied a past-performance yardstick and directed income estimation at 0.50% of total sales for the relevant year. en-us Mon, 29 Dec 2025 00:00:00 +0530 Wed, 31 Dec 2025 09:17:37 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=784227 Whether income could be estimated at 1% of turnover after rejection of books under s.145(3) turned on the evidentiary basis for the rate adopted. The Tribunal held that the AO's 1% estimate rested on mere observation that similar businesses show 0.8%-1.25% profit, without any cogent material or proper comparability analysis, rendering the estimation ad hoc and presumptive; consequently, the estimate at 1% was set aside. Given that the assessee's manufacturing activity was not disputed and its past average net profit was about 0.4%, the Tribunal applied a past-performance yardstick and directed income estimation at 0.50% of total sales for the relevant year. Case-Laws Income Tax Mon, 29 Dec 2025 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=784227