ITAT Reduces Income Estimation to 4% in Lakshmi Durga Case from 8%

Lakshmi Durga Distributors Vs ITO (ITAT Visakhapatnam) ITAT Visakhapatnam reviewed an appeal filed by Sri Lakshmi Durga Distributors, challenging the order of the CIT(A) on the assessment for the AY 2017-18. The Assessing Officer (AO) had estimated the income of the assessee at 8% of the total turnover of Rs. 1,38,10,152 based on VAT returns and added Rs. 9,47,000 as unexplained income due to cash deposits. The CIT(A) upheld these additions despite the assessee’s failure to respond to notices. The ITAT found that the AO had mistakenly included cash deposits in the turnover while estimating i...