Gross Profit Addition Quashed Due to Lack of Basis in Estimation

Casa Del Tubo Vs ACIT (Karnataka High Court) Karnataka High Court held that the Rs.25 lakh addition towards gross profit was unsustainable, as the Assessing Officer and Tribunal failed to provide a rational basis for estimation, despite proper books of account and explanations regarding exchange rate fluctuations. The case of Casa Del Tubo Vs Assistant Commissioner of Income-tax (ACIT) before the Karnataka High Court addressed the permissibility of estimating an assessee’s gross profit and making an addition to the income without a clear and rational basis, specifically when the books o...