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2020 (3) TMI 282 - ITAT AHMEDABADRevision u/s 263 - Estimation of profit - HELD THAT:- Since the income were assessed on estimated basis, separate additions of ₹ 20 Lacs over and above the assessed income was uncalled for. Both the lower authorities were bound to follow the same. We find that Ld.CIT(A), at para 4.1 of the impugned order, has correctly ascertained assessee’s income at ₹ 1,87,524/- which was in consonance with the directions of Tribunal order [2015 (9) TMI 1680 - ITAT AHMEDABAD] . The said computation comprised-off of estimated income @3%, other income as per financial statements and disallowance u/s 40A(3). Against the same, deduction of interest and remuneration to partner’s have been allowed. The same is in consonance with the case history. Therefore, on the facts and circumstances of the case, we direct Ld. AO to adopt the income at ₹ 1,87,524/- and recompute assessee’s tax liability. The appeal stands partly allowed. For AY 2007-08 we find that the approach of Ld.CIT(A), in this year, was substantially correct. As per the Tribunal’s order dated 18/09/2015, the income was to be reduced by ₹ 25 Lacs. However, the observation that deduction of interest of ₹ 5 Lacs was not claimed by the assessee is not correct since upon perusal of financial statements as placed on record, it is quite discernible that that assessee has claimed deduction of interest of ₹ 5 Lacs. Therefore, there would be no occasion to issue the stated directions to Ld. AO. In nutshell, the assessee’s income would be taken as ₹ 7,11,694/- being differential of ₹ 32,11,694/- and ₹ 25,00,000/-. The appeal stands partly allowed.
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