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2021 (1) TMI 776 - AT - Income TaxEstimation of income - As contended by the assessee that the AO has not pointed out any discrepancies in the seized material on the basis of which he rejected assessee's business result and also did not provide any reason for estimating income @10% besides what the assessee has stated in his statement - CIT-A applied the rate of 8% - HELD THAT:- As per Section 44AD of the Act, the prescribed rate as a thumb rule in assessee's line of business is 8% of turnover. In case an assessee claims that his profits are below 8%, he must maintain books of account and get them audited. These exercises were not done by the assessee. Therefore, in the interest of justice, the Ld. CIT(Appeals) had applied the rate of 8% as per Section 44AD of the Act to the income of the assessee considering his area of business. Thus, the findings of the Ld. CIT(Appeals) are absolutely reasonable and as per law. Therefore, the same does not call for any interference. Hence, the findings of the Ld. CIT(Appeals) are upheld. - Decided against assessee.
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