AO can’t estimate net profit rate higher than rate declared by Co. in prior year without any reasonable basis: ITAT

INCOME TAX : Where Assessing Officer after rejecting books of account of assessee proceeded to estimate income of assessee by applying net profit at rate of 7 per cent as against net profit of 6.5 per cent shown by assessee, since net profit at 6.5 per cent declared by assessee was higher than net profit declared by it in preceding year, impugned adoption of net profit at 7 per cent without any reasonable basis, criteria or guidelines applied by Assessing Officer, was not justified

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