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2016 (12) TMI 1778 - ITAT INDORENP determination - estimation of profit - HELD THAT:- Net profit for the A.Y. 09-10 and A.Y. 10-11 has been shown by the assessee at 5.28% and 5.75% respectively. Therefore, if 2% increase is considered, the net profit for the relevant assessment year with go upto 7.14% which is much higher than the average net profit in the above mentioned assessment years. Estimation of profits by the A.O. has not been found based on some cogent and relevant material. CIT(A) was reasonable in increasing the profit by 1% which will take the net profit for the relevant year at 6.14% which will still be much higher than 5.5%, the average of two preceding assessment years. In view of the above discussion and the facts and circumstances of the case, we hold that CIT(A) was justified in directing the AO to recompute the profits by increasing the same @ 1% as against 2% applied by the Assessing Officer. We, therefore, confirm the order of the learned CIT(A).
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