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2016 (6) TMI 930 - AT - Income TaxEstimation of net profit @ 0.75% - rejection of trading & profit and loss account - business of export of rice and mustard cake - Held that:- The assessee had not produced any books of accounts and supporting documents before the Learned AO. Under these circumstances, we find that net profit of the business had to be determined only on estimated basis. We find that the Learned CITA in the absence of past history of the assessee, had resorted to refer to subsequent year’s net profit which was disclosed at 0.60% by the assessee. The Learned CITA had determined the net profit @ 0.75% . We find, in the facts and circumstances of the case and the line of business in which assessee is engaged, that the determination of net profit @ 1% would cover up all the other deficiencies in the business of the assessee and we direct accordingly . All other additions made by the Learned AO would stand deleted once income is determined at 1% of turnover. Hence the grounds raised by the revenue are partly allowed.
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