Tag: net profit rate

Bulk entries passed in books of accounts cannot be said to be entirely bogus expenses – ITAT In a recent judgment, the ITAT Chennai has held that practice of making bulk entries in books of accounts is indeed an accounting anomaly, but cannot be straightaway construed as booking …

Net Profit rate of 8% not applicable for audit case. Net Profit rate of 6% is reasonable for business of civil construction – ITAT In a recent judgment, the ITAT Patna has held that though in the non-audit case, Net Profit rate of 8% is considered as fair …

Reduction in Gross/Net Profit rate not ipso facto a ground for making disallowance of expense but a triggering point for verification of expenses claimed. ABCAUS Case Law CitationABCAUS 3493 (2021) (04) ITAT Important case law relied referred:ITO vs. Dr. Mahendra Kumar Agarwal In the instant case, the assessee …

Bogus purchases additions not based on average GP or NP declared by the assessee in preceding years or some reasonable or proper criteria deleted by ITAT ABCAUS Case Law Citation:ABCAUS 3071 (2019) (07) ITAT This appeal by the assessee was directed against the order of the CIT (A) …

Profit rate on bogus purchases reduced as assessee also paid VAT on purchases. ITAT directed AO to recompute income after applying profit rate of 8% ABCAUS Case Law Citation: ABCAUS 2946 (2019) (05) ITAT The assessee had appealed against the orders of Commissioner of Income Tax (Appeals) against …

Mere agreeing to increased net profit rate, by itself was no ground to levy penalty u/s 271(1)(c) when it was already higher compared to preceding assessment years – ITAT ABCAUS Case Law Citation: ABCAUS 2840 (2019) (03) ITAT Important Case Laws Cited/relied upon by the parties Harigopal Singh …

Mere fall in net profit rate by itself no ground to increase profit rate as compared to the preceding assessment years as profit cannot be static each year – ITAT ABCAUS Case Law Citation: ABCAUS 2598 (2018) (10) ITAT The appellant assessee was aggrieved by the order of …

Net profit ratio of 3 percent in contract business allowed as in earlier years even lower profit rate was consistently accepted without objection by the Department – ITAT ABCAUS Case Law Citation: ABCAUS 1225 (2017) (04) ITAT The Grievance: The appellant assessee was aggrieved by the order passed by …

There is no hard and fast rule of earning same net profit rate over different years. Additions made without any plausible reason or rejecting books of accounts bad – ITAT In a recent judgment, ITAT has held that there is no hard and fast rule of earning same …