ITAT says Profit Estimation Cannot Rest on Mere Guesswork

Singhal Securities reported turnover of ₹205.43 crore but declared a loss. The AO rejected the books and estimated profit at 2% of turnover, later reduced by the CIT(A) to 0.5%. The ITAT found that neither authority had properly considered the nature of online share trading or the substantial documentary evidence produced by the assessee, and held that the estimated addition could not survive.