#estimated income

ITAT Agra deleted Rs. 24.01 lakh addition where the assessee proved the seized cash belonged to a third party engaged in legitimate agricultural business with documented sales and tax filings. This reinforces that mere possession of cash does not equate to undisclosed income - taxpayers with verifiable non-taxable sources are protected from speculative additions.

The ITAT Delhi has ruled that tax authorities cannot impose a mechanical 2% income estimation on businesses with a demonstrably lower and consistent gross profit margin of just 0.29%. This sets a binding precedent for traders and pass-through entities, ensuring estimated income assessments must reflect commercial reality, not arbitrary benchmarks, and deletes penalties imposed on such taxpayers.