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2018 (4) TMI 1537 - HC - Income TaxUnexplained cash creditors - suppression of sale - application of net profit rate of 1.5% on the estimated sales - Held that:- The assessee has discharged his onus of proof regarding the identity, creditworthiness and genuineness of the transaction. There is no evidence against the creditors to prove that they were providing accommodation entries. Therefore, mere deposit of money by the creditor on the same day does not establish that the loan is not genuine. It is an undisputed fact that while estimating the income, the AO has not based his estimate on any comparable case, or the past history of the case. Further, legally, he could not have added the entire difference between the estimated and declared sales as income; only the profit element ought to have been brought to tax. While the estimate of sales does not call for any interference, the reasonability of estimate of profit has to be judged in the light of comparable cases. - Decided against revenue
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