ITAT Mumbai rejects 8% estimation for non-audit u/s 44AB; adopts 2.5% profit based on assessee’s offer

Sharayu Synthetics Processors Vs DCIT (ITAT Mumbai) ITAT Mumbai rejects 8% estimation for non-audit u/s 44AB; adopts 2.5% profit based on assessee’s offer In this case, the Mumbai ITAT dealt with estimation of income where the assessee had not complied with audit requirements u/s 44AB. The AO estimated income at 8% of turnover by applying analogy of section 44AD, which was upheld by the CIT(A). The Tribunal first condoned delay of 341 days in filing the appeal, accepting reasons such as communication issues (email sent to former auditor/retired partner) and personal hardship due to death in ...