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2023 (8) TMI 911 - AT - Income TaxRejection of books of accounts - estimated net profit @ 15% on Turnover - HELD THAT:- We note that comparable cases and instances discussed by ld CIT(A) in his order state that net profit ratio ranges between 6% to 15% in similar business. However, we note that ld CIT(A) took highest net profit ratio at 15% which is unreasonable. Based on the factual position narrated we are of the view that estimation made by ld CIT(A) is not based on sound reasoning in comparison with the past results as well as comparable cases - Hence, we are of the view that for assessment years 2013-14 and 2014-15, the net profit ratio on turnover should be at 11% and 14% before remuneration and interest to partners, respectively, on turnover, would be fair and reasonable. Therefore, we direct the assessing officer to estimate the net profit on turnover for assessment years 2013-14 and 2014-15, at the rate of 11% and 14%, respectively, before remuneration and interest to partners.
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