Livestock dealer's 0.6% gross profit rate retained after books rejection, ITAT restricts assessment to declared rate exceeding 0.5% benchmark.

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....ITAT allowed the appeal concerning gross profit estimation after rejection of books of accounts for a livestock dealer. The assessee purchased animals from farmers and sold to slaughterhouses, conducting transactions primarily in cash without formal bills or vouchers due to the nature of the business. The coordinate bench in Salauddin Saifi established 0.5% as reasonable profit for this trade. The CIT(A) had enhanced the GP ratio based on comparable cases, but ITAT directed the AO to restrict GP to 0.5%. Since the assessee had already declared 0.6% GP, which exceeded the benchmark, ITAT directed retention of the declared rate, allowing the assessee's grounds and providing favorable relief.....