https://www.taxtmi.com/caselaws?id=465622 The dominant issue was estimation of business income where the AO, following a special audit under s. 142(2A), and the CIT(A) applied profit at 15% of gross sales and made/deleted allied expenditure adjustments. The ITAT held that, on the facts, a net profit rate of 8% on the declared gross sales was reasonable, and since income was estimated on a net basis, no further deductions for depreciation or interest were allowable. Consequently, the AO was directed to assess income at 8% of sales or the income returned in s. 153A proceedings, whichever was higher, and the Revenue's challenge to the CIT(A)'s deletions/15% estimation was rejected. en-us Fri, 21 Oct 2016 00:00:00 +0530 Sat, 03 Jan 2026 08:03:08 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=465622 The dominant issue was estimation of business income where the AO, following a special audit under s. 142(2A), and the CIT(A) applied profit at 15% of gross sales and made/deleted allied expenditure adjustments. The ITAT held that, on the facts, a net profit rate of 8% on the declared gross sales was reasonable, and since income was estimated on a net basis, no further deductions for depreciation or interest were allowable. Consequently, the AO was directed to assess income at 8% of sales or the income returned in s. 153A proceedings, whichever was higher, and the Revenue's challenge to the CIT(A)'s deletions/15% estimation was rejected. Case-Laws Income Tax Fri, 21 Oct 2016 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=465622