AO Estimates Profit without Rejecting Books, Relies on Faulty Comparison with Sister Concern: ITAT deletes ₹5.82 Crore Addition

ITAT deleted a crore addition made by the AO, who estimated profit without rejecting the books of accounts and relied on a faulty comparison with a sister concern. The tribunal found that the Assessing Officer's approach was flawed as there was no basis to doubt the authenticity of the assessee's books. Furthermore, the comparison with the sister concern was deemed inappropriate. This decision underscores the principle that tax authorities cannot arbitrarily estimate profits without valid reasons for rejecting the taxpayer's financial records and must rely on fair and accurate comparisons.