No Books, No Section 68 Addition: ITAT Deletes Loans and Capital After Estimating Liquor Trade Profit

Raj Kumar & Co. Vs ITO (ITAT Amritsar) No Books, No 68- ITAT Says Only NP Estimation Valid in Liquor Trade Case- Once Profit is Estimated, AO Cannot Add Loans or Capital The Assessee, a partnership firm engaged in IMFL & beer trading for only one year (FY 2016-17), neither filed return u/s 139(1) nor maintained books or audit. AO completed best judgment assessment u/s 144 on the basis of a “draft return” showing sales of ₹9.92 crores, estimated net profit @10% & made separate additions of ₹43.50 lakhs (unsecured loans) & ₹5.89 lakhs (partners’ capital) u/s 68. CIT(A...