Section 40A(3) cannot be invoked as income estimated based on gross profit rate

Mahesh Kumar Verma Vs PCIT (ITAT Delhi) ITAT Delhi held that invocation of provisions of section 40A(3) of the Income Tax Act not justifiable as income is estimated on the basis of gross profit rate. Thus, disallowance u/s. 40A(3) set aside and appeal stands allowed. Facts- The present appeals are preferred by the assessee. The only issue in this appeal of assessee as regards to revision order passed by PCIT u/s 263 of the Act on the aspect of lack of enquiry and consequently non-disallowance of unaccounted purchases made in cash of Rs.5,83,99,000/- by not invoking the provision of section40A(...