Tax Dispute Resolved: ITAT Scrutinizes Unexplained Expenditures, Validates Loans, and Reduces Disputed Financial Entries

ITAT adjudicated multiple tax-related issues involving unexplained expenditures and financial transactions. The tribunal comprehensively examined seized documents, bank deposits, and unsecured loans. Key holdings include: deletion of additions related to a third-party diary and bank deposits recorded in the assessee's balance sheet; rejection of revenue authorities' claims of unexplained sources. Regarding unsecured loans, ITAT found the loans genuine based on provided affidavits, despite lenders' non-response to notices. Partial confirmations were made for unexplained expenses in seized documents and agricultural expenditure, where the assessee failed to substantiate alternative explanations. The tribunal substantially reduced the original additions made by the Assessing Officer, providing nuanced relief to the assessee across various contested financial entries. .....

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