Section 40A(3) not invocable as income assessed at flat gross profit rate: ITAT Chennai

Gold AIK Vs ITO (ITAT Chennai)

ITAT Chennai held that since income of the assessee is assessed by applying flat gross profit rate of 2% hence provisions of section 40A(3) cannot be invoked. Accordingly, disallowance u/s. 40A(3) not justified.

Facts- The assessee is a partnership firm engaged in the business of retail sale of gold in the name and style of M/s. Gold AIK. Post search operation, AO computed unaccounted sales of the assessee at Rs. 1,36,05,133/- and estimated the profit on un

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