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2016 (7) TMI 1286 - AT - Income TaxEstimation of profit in the trade of IMFL - Held that:- The very same issue of estimation of profit in the trade of IMFL was considered by the coordinate bench of the Tribunal in the case of Tangudu Jogisetty [2016 (7) TMI 379 - ITAT VISAKHAPATNAM ]and held that estimation of 5% net profit on purchase is reasonable and directed the A.O. to estimate the net profit of 5% on total purchases net of all deductions Thus we set aside the order passed by the Ld. CIT(A) and direct to remit matter back to the A.O. to estimate the profit from the business of the assessee by applying the rate of 5% of the purchases made net of all other deductions.
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