Addition based on unsubstantiated documents like loose sheets, ...

Uncorroborated Documents Insufficient for Income Additions; Evidence Required for Unaccounted Cash Receipts.

July 27, 2024

Case Laws Income Tax AT

Addition based on unsubstantiated documents like loose sheets, jottings, and Excel sheets - unaccounted cash receipts from students - cannot be sustained. Statements recorded solely cannot constitute incriminating material for additions. Unsubstantiated loose papers without corroboration by inquiry or leading to undisclosed assets cannot be basis for additions. Suspicion alone cannot replace evidence. AO failed to establish live link between seized material and unaccounted fees resulting in undisclosed assets. Uncorroborated seized material alone cannot be considered conclusive evidence. Presumption u/s 132(4) is rebuttable. AO should act judicially on adequate material, not arbitrarily. Additions cannot be made without examining concerned students/parents. Mere notes in diaries/loose sheets require corroboration. Non-speaking documents without corroborative evidence showing undisclosed income cannot be relied upon for additions.

View Source

← Previous Next →

Addition based on unsubstantiated documents like loose sheets, ...

Uncorroborated Documents Insufficient for Income Additions; Evidence Required for Unaccounted Cash Receipts.

July 27, 2024

Case Laws Income Tax AT

You may also like:

Digital images and Excel files found on partner's phone cannot be relied upon for making additions u/s 69C for unexplained expenditure. Loose papers and documents not...

Addition u/s 68 OR 41(1) - unexplained cash credit - Cessation of liability - The appellant contested additions to their income, alleging bogus sundry creditors. Despite...

The ITAT partially allowed the assessee's appeal, directing deletion of several additions and modifications to income calculations. Key outcomes include: (1) commission...

The case involves the validity of assessments u/s 153A and 132 of the Income Tax Act. In the absence of incriminating material seized during the search, assessments...

ITAT quashed reassessment proceedings regarding alleged undisclosed "on-money" payments to builder for residential property. AO's reliance on pen drive and documents...

Unsubstantiated and uncorroborated seized material alone cannot be considered conclusive evidence for additions u/s 69B. The words "may be presumed" in Section 132(4)...

The assessee provided documentary evidence supporting the purchase and subsequent sale of shares leading to long-term capital gains (LTCG). The evidence included...

The ITAT rejected the revenue's appeal, finding that the Assessing Officer (AO) improperly made additions under sections 69A and 69C without substantive evidence. The...

This case deals with the levy of penalties u/ss 271AAA and 271(1)(c) of the Income Tax Act in relation to various additions made to the assessee's income based on seized...

No separate additions required when assessee has admitted the income in the hands of HUF - AT

Addition to income - additional evidence submitted by assessee allowed - AT

Income from undisclosed sources - addition of agricultural income - Assessment of agricultural income declared by the assessee for various assessment years was...

The ITAT allowed the assessee's appeal, reversing additions made by the AO. The Tribunal held that the LTCG from Pine Animation Ltd shares was genuine, as the assessee...

Additions towards income earned from undisclosed investment - The addition of income earned from the investment is also solely based upon the admission by the ex-partner...

CENVAT Credit - duty paying invoices - performa invoices - the documents required under the Rule 9 are not confined to merely invoices but these may be any documents,...

Quick Updates: