Section 44AD Overrides Ad-Hoc 50% Profit Estimation

Ruksarali Iftikharali Shaikh Vs ITO (ITAT Surat) Best Judgment Can’t Be Wild Judgment- 50% Profit Estimation Junked: ITAT Surat Applies 44AD & Cancels Penalty Scrap Sale ≠ 50% Profit: Section 44AD Rescues Small Trader- When 44AD Applies, 271(1)(c) Falls Flat In Ruksarali Iftikharali Shaikh vs. ITO, Ward-7, Vapi (ITA Nos.777 & 778/Srt/2025, AY 2010-11; order dated 29-12-2025), the Surat Bench of ITAT granted substantial relief to a small scrap trader by rejecting arbitrary 50% profit estimation and quashing penalty u/s 271(1)(c). The Assessee had not filed a return for AY 201...