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2015 (6) TMI 237 - AT - Income TaxRejection of books of accounts - estimation of net profit rate at 7% - Held that:- We find merit in the arguments of ld. DR that it is incomprehensible that such a voluminous and diverse business can be profitably conducted by assessee without proper record and stock registers. Thus the books of account of the assessee have been rightly rejected by the lower authorities. Now coming to the estimate of NP, the facts and circumstances of assessee's business remained same as in the preceding year where various additions were made by the AO. In first appeal, the ld. CIT(A) restricted the estimation of net profit rate at 4.46% subject to depreciation and interest which is reasonable. Looking at the entirety of the facts and circumstances of the case, we are of the view that estimate of NP rate of 7% is on higher side looking at the past history of the assessee. Thus, we restrict the net profit rate at 4.46 % as adopted in preceding year instead of 7% determined by the ld. CIT(A). - Decided partly in favour of assesse.
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