Shankerlal Doulatram Ramani Vs ACIT (ITAT Mumbai)
The addition @ 3% is not based on any material and is only on the basis of assumptions and presumptions – Not sustained by ITAT Mumbai; ITAT Mumbai Quashes Profit Estimation: Assessee’s Audited Books Found Justifiable; ITAT Sets Aside CIT(A)’s 3% Profit Estimation in Liquor Dealer’s Case for AY 2017-18; Profit Estimation Without Evidence Quashed by ITAT Mumbai in Vintage Wines Case; ITAT Slams Arbitrary Estimation: Assessee’s Books Audited, Verified by AO; Profit Estimation Without Sales Bills Set Aside: AO Had Verified VAT Returns and Expenses
The entire exercise of examining and verification of the required documents by the AO, Still Ld. CIT(A), sustained addition by estimating net profit in absence of sales bills. In our view when once entire documents placed on record along with books of accounts and VAT records in the shape of audited report of VAT and VAT returns in support of sales and purchases and other documents which were duly examined and verified by the AO and the AO was satisfied with the said Documents then in that eventuality, there was no occasion before the Ld. CIT(A) to make estimation. Thus, in our considered view the addition @ 3% is not based on any material and is only on the basis of assumptions and presumptions. Once the documents have already been placed on record by the assessee, therefore the question of making estimation by assumptions and presumptions has no place in law. Therefore, the additions sustained by Ld. CIT(A) stands quashed and the ground raised by the assessee is allowed.
