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Profit margin disclosed by assessee cannot be rejected arbitrarily
Case Law Details
- Case Name
- Sukhwinder Singh Vs ACIT (ITAT Delhi)
- Appeal Number
- Only available for paid members
- Date of Judgement/Order
- Only available for paid members
- Related Assessment Year
- 2003-2004
- Courts
- All ITAT, ITAT Delhi
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Sukhwinder Singh Vs ACIT (ITAT Delhi)
The issue under consideration is whether addition made by AO by application of N.P. rate of 8% is justified in law?
ITAT states that, the profit margin of the assessee was very low and has never reached to the extent of 8% as is applied by the authorities below. The A.O. has not cited any comparable cases to arrive at the decision for application of N.P. rate of 8%, is justified in the matter. It is also not in dispute that in A.Y. 2001-02, the A.O. in the regular assessment under section 143(3) has accepted profit rate declared by assessee at 1.54%. The A...
