Income tax assessment is a highly subjective process yet very technical. A small error on either side can go adverse and prove to be detrimental in the long chase in litigation in Courts and Tribunal.
The Mumbai bench in (2021) 92ITR(Trib) SN 47 in one such instance held that no addition can be made on estimated basis by the AO without pointing out defects in the books of account or details furnished before the him or her.
More so the Tribunal found merits in this case based on the rule of consistency drawing reference to preceding and succeeding year allowance of similar expenditure.
This case involved inquiries u/s133(6) of creditors where some failed and some submitted before AO in remand proceedings yet the AO/CIT(A) decided to make 50% addition.
All such cases of inquiry where AO may resort to additions in some partial manner could be hit by this decision unless he points out any defect in the documents or details filed by the taxpayer.