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2012 (5) TMI 687 - AT - Income TaxEstimation of profit by applying 8% of Net Profit rate - Held that:- No good reason for estimating profit by applying lower rate than 8% as small assessee having turnover not exceeding ₹ 40 lakhs are legally required under section 44AD to disclose profit by 8%. We confirm the order of Assessing Officer and CIT(A) where 8% profit rate has been applied for estimation of income. We find force in the submission of the assessee in the written submission that the interest income of ₹ 79,400/- is business income and the same need not be separately added in estimation by applying 8% profit rate. The interest income which is business income of the assessee is covered in the said estimation and separate addition is not required. Modify the order of the Assessing Officer and CIT(A) and direct the Assessing Officer not to include the interest income of ₹ 79,400//- in estimation of total income. The assessee gets relief of ₹ 79,400/-.
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