Addition u/s 68 cannot be made solely based on sworn statement ...

Addition u/s 68 requires corroborative evidence, not mere statements. Onus on Dept to collect cogent proof. Tax actual gains, not assumptions.

August 5, 2024

Case Laws Income Tax AT

Addition u/s 68 cannot be made solely based on sworn statement recorded u/s 132(4) without corroborative materials. Onus lies on the Department to collect cogent evidence to corroborate notings on loose sheets. Additions cannot be made based on assumptions, suspicions, or irrelevant inadmissible material. Capital gains should be taxed on actual gains, not fictional income. Unless evidence shows more was received than stated, no higher price can be the basis for addition. Issue remitted to Assessing Officer to re-examine if ingredients of section 68 are present based on corroborative seized material, not statements u/s 132(4) or 131. For section 69B and 69C additions in assessment years 2017-18 and 2018-19, additions based on unsubstantiated seized material and statements u/s 132(4) cannot be sustained. Accordingly, additions deleted.

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Addition u/s 68 cannot be made solely based on sworn statement ...

Addition u/s 68 requires corroborative evidence, not mere statements. Onus on Dept to collect cogent proof. Tax actual gains, not assumptions.

August 5, 2024

Case Laws Income Tax AT

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