Apply Reasonable Profit Rate Due to Sub-Contracts, Not 10%: ITAT Bangalore

DCIT Vs USK Constructions Co. DP (ITAT Bangalore) ITAT Bangalore: Profit Estimation in Search Case—10% Rejected; Reasonable Rate to Be Applied Considering Sub-Contracts The Income Tax Appellate Tribunal partly allowed the Revenue’s appeal for AY 2019-20 in the case of USK Constructions Co., holding that while estimation of profits was justified in a search case involving inflated expenses, the blanket adoption of 10% net profit by the Assessing Officer was excessive and unsustainable. The assessee, a partnership firm engaged in civil construction, was subjected to a search under section 13...