ITAT Mumbai has deleted a ₹62 lakh addition under Section 69 due to inadequate corroborative evidence from third-party statements and Excel entries. This ruling underscores the importance of having substantiating documentation in tax assessments.
ITAT Mumbai Deletes ₹62 Lakh On-Money Addition for Lack of Evidence
The Income Tax Appellate Tribunal (ITAT) Mumbai has ruled in favor of the taxpayer by deleting a ₹62 lakh addition assessed under Section 69 of the Income Tax Act. The tribunal found that the evidence presented, primarily consisting of third-party statements and entries in Excel sheets, failed to meet the standards of corroborative proof required for such a significant assessment.
The decision highlights the necessity for the assessment framework to rely on strong and credible evidence when making substantial tax additions. In this case, the tribunal noted that the on-money addition was not supported by verifiable documentation that could substantiate the claims made by the revenue authorities.
This ruling serves as a reminder for practitioners that tax assessments must be backed by substantial records. It emphasizes that mere assertions without corroborative evidence may not hold up in court, thereby providing substance to taxpayers' rights during scrutiny.
Citations
- ITAT Mumbai (2026) TaxGuru
