ITAT Upholds Deletion of ₹5.82 Cr Ad Hoc Profit Estimation Due to Non-Rejection of Books

ITO Vs Ambience Developments (ITAT Pune) The Income Tax Appellate Tribunal (ITAT) Pune dismissed the Revenue’s appeal against the order of the National Faceless Appeal Centre (NFAC), Delhi, which had deleted an addition of ₹5.82 crore to the income of Ambience Developments for the Assessment Year 2013-14. The Assessing Officer (AO) had estimated a profit of ₹5.82 crore on the total sale of ₹15.22 crore for the ‘Ambience Greendale’ project, arriving at a profit margin of 38.26%. This estimation was based on a comparison with the 64% profit margin disclosed by a sister co...