Court Upholds 7% Profit Estimation on Turnover; AO's 40% Estimation Deemed Unjustified in Bogus Purchases Case.

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....Estimation of income - Bogus purchases - Rejection of books of accounts - There is no error in the finding of the ld.CIT(A) for rejection of the books of accounts as well as estimation of profit at 7% on the total turnover. There is no justification at the end of the AO to estimate profit at 40% of the turnover, which is merely based on some illogical consideration of facts and figures. - AT....