ITAT Chennai Reduces Estimated Profit from 8% to 6.5% of Bank Deposits in Best Judgment Assessment

Eswaramurthy Prakash Vs ITO (ITAT Chennai) ITAT Chennai Reduces Estimated Profit from 8% to 6.5% of Bank Deposits in Best Judgment Assessment The assessee, engaged in garment trading, had not filed a return of income for AY 2016-17. Based on information that the assessee’s bank account reflected credits of about ₹1.37 crore, the AO reopened the assessment and completed it ex-parte, estimating income at 8% of total bank credits under best judgment assessment. The CIT(A) upheld the estimation by relying on the presumptive rate under section 44AD due to absence of books of account. Before the...