Addition on “peak purchase” was restricted to differential margin between declared and benchmark profit in Rice Trading Case

Kamlesh Kumar Kesharwani Vs ACIT (ITAT Raipur)

Conclusion: Addition to the differential margin between the Gross Profit (GP) declared by the assessee and the benchmark rate of 10% adopted as the industry average for rice trading was restricted affirming that a full disallowance of such purchases was not justified when the corresponding sales were accepted by the Revenue authorities.

Held: Assessee was a trader engaged in the purchase and sale of rice and allied products under his proprietary concern M/s Kesharwani Rice Mills, Raipur, was sub

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