Unexplained cash payment to developer insufficient for tax addition without corroboration.

The Income Tax Appellate Tribunal (ITAT) ruled that an unexplained cash payment alleged to have been made by the assessee to a developer as on-money for property purchase cannot be added to the assessee's taxable income without corroborative evidence. The addition was initially based on data from a third party's search and their confession before the Settlement Commission. However, the ITAT found this insufficient due to the assessee's complete denial and the lack of opportunity to cross-examine the builder who admitted to receiving the on-money. The decision favored the assessee, deeming the addition unsustainable. .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X