ITAT ruled against Revenue's addition under s153A for alleged ...

Tax Addition Under Section 153A Quashed: Pre-Search Statements Without Supporting Evidence Cannot Establish Bogus Purchases

March 4, 2025

Case Laws Income Tax AT

ITAT ruled against Revenue's addition under s153A for alleged bogus purchases. Assessment was based solely on pre-search statements from ML and DK without supporting incriminating materials discovered during search operations. Assessee provided complete quantitative details backed by tax audit reports, with no discrepancies except statements and STRs from Investigation Wing. Tribunal emphasized that circumstantial evidence and statements alone cannot constitute incriminating material without corroborative proof. Mere reliance on statements recorded prior to search, without additional evidence gathered during search proceedings, failed to establish bogus purchases. Assessment order quashed due to lack of incriminating material found during search.

View Source

← Previous Next →

ITAT ruled against Revenue's addition under s153A for alleged ...

Tax Addition Under Section 153A Quashed: Pre-Search Statements Without Supporting Evidence Cannot Establish Bogus Purchases

March 4, 2025

Case Laws Income Tax AT

You may also like:

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...

The ITAT held that additions to the assessee's income cannot be made solely based on statements recorded during a search/survey operation u/s 131 of the Income Tax Act,...

Additions u/s 153A solely based on a sketchy statement of an accountant u/s 132(4), which in turn is based on a confessional statement of a director in a previous...

Addition on the basis of declaration made by assessee during a search action u/s 132 - The ITAT found no merit in the revenue's arguments, noting that the addition was...

Confiscation of the gold bars - remelted gold of foreign origin or not - The admissibility and weight of retracted statements - The Tribunal found that the appellants...

ITAT ruled against additions made under section 69 for alleged cash loans and notional interest. The additions were based solely on documents seized during third-party...

Addition made u/s 69C of the Income Tax Act for alleged cash payments based on a WhatsApp message and statement of a third party. The key points are: The WhatsApp...

Reassessment proceedings initiated u/s 147 were quashed by ITAT for violation of principles of natural justice due to lack of opportunity for cross-examination of...

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

ITAT ruled against additions made under section 153A for unsecured loans (s.68) and interest expense disallowance (s.37(1)) in a concluded assessment year. Following SC...

HC invalidated search and seizure operations conducted at petitioner's residence under PMLA, 2002. Court held that mere suspicion of money laundering without substantive...

Evidence - It is a settled law that the statement recorded under Section 108 of the Customs Act is a material piece of evidence and can be used as substantive evidence....

Smuggling - contraband item kept in safe custody by income tax officers - The statements of the Income Tax Officers find requisite support in the statements of the...

Introduction of block assessment provisions in cases of search u/s 132 and requisition u/s 132A for early finalization of search assessments, coordinated investigation,...

The addition made u/s 68 for bogus share application money receipts was solely based on the statement of an unrelated third party, Shri Pravin Kumar Jain, recorded...

Quick Updates: