Books rejection upheld, but 8% profit estimate cut down to 2%

Advertisement Era Infra Saidutta JV Vs ACIT (ITAT Delhi) Delhi ITAT partly allowed the assessee’s appeal arising from rejection of books u/s 145(3) &  estimation of profits. The assessee, a JV executing infrastructure contracts, had declared net profit of about 1.65% on gross receipts of ₹20.75 crore. The AO rejected the books on the ground that complete books, ledgers &  supporting evidence relating to contract expenses were not produced, &  estimated profit @ 8% of turnover, resulting in addition of ₹1.31 crore (after giving credit for declared profit). Tribunal held ...