Once Books Rejected, Profit Estimation Must Rely on Industry Data: ITAT Mumbai

DCIT Vs Miniboss Consultancy Pvt. Ltd. (ITAT Mumbai) Once Books Rejected, Profit Must Be Estimated with Comparables – CIT(A) Erred in Accepting 5% GP Without Evidence Assessee, engaged in marketing & event support activities, filed return declaring income of ₹40.51 lakhs. AO, finding substantial purchases from suspicious/non-filer parties, rejected books & estimated net profit @20% of sales, assessing total income at ₹2.86 crores. Separate additions of ₹24.34 lakhs (unexplained liabilities u/s 68) & ₹19.09 lakhs (fixed asset additions) were also made. Before CIT(A), Asses...