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2024 (5) TMI 823 - ITAT HYDERABADEstimation of Net profit - assessee failed to prove the source of cash deposits and that such deposits are only from the business, confirmed the addition - HELD THAT:- The figures establish that at no point of time, the net profit from the line of business of the assessee is as high as 10%. The accepted figures show that it is from 0.5% to 8%. In these circumstances, estimate of net profit at 10% is too high and on the face of the figures disclosed by the assessee, net profit at 0.5% is too low. Taking a pragmatic view, we consider the net profit at 5% is reasonable and will meet the ends of justice and, therefore, accept the contention raised by AR. AO is accordingly directed to estimate the net profit at 5% of the total sales. Appeal of the assessee is allowed in part.
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