No Question of Law in GP Estimation: Bombay HC

PCIT Vs N. N. Trading Corporation (Bombay High Court) In PCIT vs N.N. Trading Corporation, the Bombay High Court dismissed the Revenue’s appeal concerning the estimation of gross profit (GP) on alleged bogus purchases. The Assessing Officer (AO) had estimated the GP at 12%, which was subsequently reduced to 5.75% by the Commissioner (Appeals). The Income Tax Appellate Tribunal (ITAT) upheld this revised estimation. The Court observed that since the AO had not disallowed the full amount of purchases and the dispute was limited to the rate of profit estimation, no substantial question of law a...