Books Can’t Be Rejected Solely for Non-Audit; 8% Profit Estimate Quashed

Sumukha Travels Vs ITO (ITAT Bangalore) Bengaluru ITAT: Books Cannot Be Rejected Merely for Non-Audit; 8% Profit Estimation Set Aside The Bengaluru ITAT held that non-audit of books of account under section 44AB, by itself, is not a valid ground to reject the book results and estimate income at 8% of turnover. The assessee, engaged in the rent-a-cab business, claimed a business loss of Rs. 39.35 lakh on a turnover of Rs. 4.55 crore, explaining that fixed-rate contracts coupled with a steep rise in diesel prices and the impact of the COVID-19 pandemic had resulted in heavy losses. The Assessing...