Additions Can’t Be Based on Suspicion, ITAT Deletes 2.5% Profit

Arvind Jain Vs ITO (ITAT Delhi) No Basis, No Break-up, No Addition- TEP-Based Guesswork Collapses: Delhi ITAT Deletes Ad-hoc Profit Addition on Alleged Bogus Purchases-ITAT Quashes 2.5% Profit Estimation from ‘Bogus Purchases’ Delhi ITAT ‘E’ Bench in Arvind Jain vs ITO, Ward 5(1)(1), Noida (ITA No.5146/Del/2025, AY 2014-15, order dated 23-12-2025) deleted addition of ₹96.66 lakh made on account of ad-hoc profit estimation from alleged bogus purchases, holding that the entire exercise was without any factual foundation or cogent material. Assessment was reopened based solely on a Tax ...