ITAT: Profit Cannot Be Estimated Arbitrarily Merely Because Books Were Not Produced

Tabassum Vs ACIT (ITAT Lucknow) ITAT: Profit Cannot Be Estimated Arbitrarily Merely Because Books Were Not Produced The Lucknow ITAT set aside an addition of ₹2.25 crore made by estimating the assessee’s profit at 6% of turnover in a buffalo trading business. The assessee had declared a net profit of only 0.36%, and the Assessing Officer rejected the books of account under section 145(3) because the books could not be produced during assessment proceedings. He thereafter estimated profit at 6% of turnover and made a huge addition. The Tribunal observed that while the Assessing Officer may ...