Addition solely based on estimation without rejecting books is not sustainable

Home Developers Project Pvt. Ltd. Vs DCIT (ITAT Delhi) The case of Home Developers Project Pvt. Ltd. Vs DCIT (ITAT Delhi) has ignited a significant debate over the sustainability of tax additions based merely on estimations, without rejecting the books of accounts. The detailed order by ITAT Delhi provides critical insights into the matter. Background: The issue arises from an order dated 05.10.2018 for the A.Y. 2012-13 by CIT(A)-26, New Delhi. The Assessee filed a return on 28.09.2012, declaring Nil income. Primary Grievances: Addition of Rs. 3 crores under Section 68 of the Income Tax Ac...