ITAT Slams Ad-Hoc Profit Estimation & Deletes Family Loan Addition u/s 68

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 concrete evidenc...