ITAT Jaipur Estimated Profit at 1.52% on Turnover of Rs. 7.96 Crores amid Audit Lapses and Cash Irregularities”
The ITAT Jaipur noted that the assessee failed to file a tax audit report despite having substantial turnover and declared a meagre NP of 0.187%. The AO invoked Section 145(3) and applied a 10% disallowance on expenses due to non-verifiability of cash vouchers. The CIT(A) reduced the addition by applying a 2.16% NP rate. The Tribunal found merit in restricting the addition to 1.52%, consistent with last year’s accepted NP rate.
The copy of the order is as under:
