ITAT Sustains 8% Gross Profit Estimation on Unaccounted Sales Due to Non-Cooperation by Assessee

The ITAT upheld the addition of income based on an 8% gross profit estimation on alleged unaccounted sales due to the assessee’s non-cooperation. The assessee failed to produce books of accounts or supporting evidence despite repeated opportunities, prompting the AO to estimate income on the basis of seized documents and industry norms. The Tribunal found the estimation reasonable in view of the circumstances and reiterated that in cases of non-compliance, the Revenue is justified in making best judgment assessments. This ruling highlights the consequences of non-cooperation in assessments and supports use of estimated profit rates when actual data is suppressed or withheld.