Delhi ITAT Rejects AO’s Aggressive 18% GP Estimation in Search Case

Montage Enterprises Pvt. Ltd. Vs DCIT/ACIT (ITAT Delhi) Delhi ITAT Slashes GP Estimation in Search Case- Industry Average Prevails Over AO’s Aggressive 18% Rate; Undisclosed Sales Also Substantially Reduced In a significant relief to the assessee in a major search assessment, the Delhi ITAT held that the Assessing Officer was unjustified in applying an aggressive 18% Gross Profit rate on both disclosed and alleged undisclosed turnover merely on the basis of seized diaries and assumptions. The Tribunal followed its own order in assessee’s earlier year and ruled that industry average GP is t...