Arbitrary 3% Profit Estimation Struck Down by ITAT Hyderabad

Yugendra Puppala Vs ACIT (ITAT Hyderabad) AO can’t pluck 3% profit from thin air: ITAT upholds limited scrutiny scope but remands arbitrary estimation ITAT Hyderabad   partly allowed assessee’s appeal. Tribunal rejected legal challenge to assessment on ground of alleged illegal expansion of limited scrutiny, holding that where one of the CASS parameters was sales turnover mismatch, AO was justified in examining purchases as a necessary corollary &  no separate approval for conversion into complete scrutiny was required. However, on merits, ITAT found that estimation of net profit at...