Low-Margin Trading Business Justifies 2% Profit Estimation

Md. Shahbaz Alam Vs ITO (ITAT Ranchi) Estimated Profit Reduced to 2% in Absence of Books — Egg Trader’s Income Recomputed on Reasonable Basis The Ranchi Bench of the ITAT partly allowed the assessee’s appeal and reduced the estimated net profit rate to 2% of turnover in a case where the assessee, a wholesale egg trader, had not maintained books of account. During assessment, based on information received under Section 133(6) from a supplier and banks, the AO noticed a difference of ₹1.88 crore between purchases reflected by the supplier and turnover disclosed by the assessee. As the as...