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2015 (5) TMI 746 - AT - Income TaxAd hoc disallowance - N.P. estimation @ 12% - Held that:- Assessee's conduct during the course of assessment and appellate proceedings does not give a conducive picture, in the entirety of facts and circumstances of the case, there is no infirmity in the order of ld. CIT(A) holding that the assessee's books of account should have been rejected and NP should be estimated at 12%. This way of estimation in case of rejection of books is also a recognized manner. It is trite law that while challenging the estimate made by the income tax authorities, the burden is on the assessee to convincingly demonstrate that the estimate is arbitrary, so as to enable the appellate authority to interfere. In absence of any convincing arguments or evidence in this behalf, we see no reason to interfere in the order of estimate made by the learned CIT(A). In these circumstances, we see no reason to interfere with the rate of N.P. as estimated by the learned CIT(A). However, we find merit in the alternate prayer of the learned counsel for the assessee that a relief of interest of ₹ 42403/- and depreciation of ₹ 26641/- should be given which is allowed to the assessee. - Decided partly in favour of assessee.
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