Arbitrary higher profit rate on unaccounted sale not permitted

Brief of the Case ITAT Delhi held in the case of Mohd Tehseen vs. ITO that the rate of profit @15% on estimated unaccounted sale is an arbitrary rate without any comparable cases. The best comparison is also available of the business of the assessee himself wherein he has shown net profit at the rate of 6%. This 6% rate has not been disturbed by AO. This rate is also higher against the rates provided by provisions of section 44AF, which is 5%.  Also departmental representative could not show any reason that why profit should be estimated at the rate of 15% instead of 6%. Therefore, we are of ...