12.5% Profit on Bank Credits Excessive, Restricted to 4%: ITAT Hyderabad

Prabakar Reddy Vs ITO (ITAT Hyderabad) ITAT Hyderabad: 12.5% Profit Estimation on Bank Credits Excessive; Income Restricted to 4% in Absence of Evidence In this case, the assessee, engaged in facilitating sale of bananas, faced reassessment where the AO treated entire bank credits of ₹2.52 crore as turnover and estimated profit at 12.5%, making an addition of ₹26.58 lakh over the income already declared. The CIT(A) upheld the addition. Before the ITAT, the assessee contended that he was merely a commission agent and the bank credits represented pass-through amounts belonging to farmers, no...