8% Profit Estimate Cut to 3%: AO Ignored Books & Industry Reality

Veeranam Thirumalai Vs ITO (ITAT Chennai) In this case, the AO reopened the assessment due to cash deposits and estimated income at 8% of turnover, resulting in an addition of ₹22.98 lakh. The CIT(A) confirmed the addition ex-parte. Before the ITAT, the assessee demonstrated that: A return was filed in response to notice u/s 148, Detailed records such as cash book, bank book, purchase and sales registers were submitted, and The AO wrongly ignored these records, treating them as pertaining to another year. Crucially, the Tribunal referred to the profit trend table  showing: Profit margins...