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ITAT Slams Ad-Hoc Profit Estimation & Deletes Family Loan Addition u/s 68
Case Law Details
- Case Name
- Suman Sharma Vs ITO (ITAT Bangalore)
- Appeal Number
- Only available for paid members
- Date of Judgement/Order
- Only available for paid members
- Related Assessment Year
- 2022-23
- Courts
- All ITAT, ITAT Bangalore
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Suman Sharma Vs ITO (ITAT Bangalore)
“No Rejection of Books, No Guesswork Additions” – ITAT Slams Ad-Hoc Profit Estimation & Deletes Family Loan Addition u/s 68
In a significant ruling favouring small businesses, the Bangalore ITAT held that once the Assessing Officer has not rejected the books of account, he cannot proceed to make purely ad-hoc profit estimations merely because the net profit ratio declined. The Tribunal deleted an addition made by enhancing profit by 1% of turnover, observing that suspicion over self-made vouchers or fall in GP/NP cannot substitute...
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