Unexplained credits addition on adhoc basis at 5% cannot be sustained: Matter restored

Pradeep Kumar Agrawal Vs ITO (ITAT Raipur) ITAT Raipur held that addition towards unexplained credits on estimated basis should be the average GP rate from the preceding 3 years. In the present case the same is taken as 5% without any basis. Accordingly, matter restored back to file of AO. Facts- The assessee is engaged in trading business of paddy, rice, other bi-product and transport work. As the assessee was non-responsive, the case was completed u/s 147 r.w.s. 144 r.w.s. 144B of the I T Act on 26/03/2022, the final conclusion by the Ld. AO was that the credits in bank account of the assess...