Cash Addition Reduced: ITAT Cuts Ad Agency Profit Estimate from 8% to 5%

Media Adds India Private Limited Vs ITO (ITAT Chennai)

Past History Prevails—Arbitrary 8% Profit Rate Reduced, Cash Addition Deleted – Thin-Margin Ad Agency Wins: ITAT Cuts Estimation from 8% to 5%

Appeal was filed with a delay of 155 days, supported by affidavit. Tribunal accepted the explanation as bona fide & condoned the delay.

On merits, dispute concerned estimation of business income. Assessee, engaged in advertisement services through newspapers & other media, disclosed contract receipts of ₹8.40 crore with net profit of ₹28

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