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2017 (8) TMI 555 - AT - Income TaxUnverifiable expenses - determining appropriate profit chargeable to tax in absence of books of accounts which have been lost in an road accident - trading results not verifiable - Held that:- It is not the case of the Revenue that leasing income of the assessee is not in the nature of business income and all the Revenue’s contention is that the expenses are on a higher side as compared to last year more so on account of leasing out of the theatre for a part of the year. There is no material available on record to determine the running and fixed cost and the cost part to running of theatre and leasing of theatre. Based on material available on record, we find the approach of the ld CIT(A) as reasonable as he has followed the assessee’s past history and instead of disallowing individual expenses, has compared the net profit of the last year will the net profit declared by the assessee and he has estimated net profit at 10% as against 7.34% last year, thus taking into account low operating cost in relation to letting of theatre. In the result, grounds of the Revenue are dismissed.
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