Taxation tribunal deletes addition for unexplained cash credit

Taxation tribunal deletes addition for unexplained cash credit

incriminating material found during the search operations

The Mumbai bench of Income Tax Appellate Tribunal (ITAT) has deleted the addition for unexplained cash credit, as it was not based on incriminating material found during the course of search operations.

The assessee had raised a pertinent legal ground to submit that the impugned additions (as made in the assessment order) were not based on any incriminating material found during the search operations. And this being the non-abated year, the additions were not sustainable in law.

The assessee refuted the allegations of the assessing officer (AO) by submitting that except for the statement, there was no evidence in support of the allegation. The sole reliance on the statement was contrary to the specific directions of the Central Board of Direct Taxation (CBDT).

The assessee further stated that his statement was taken under coercion and stress. Therefore, it was not a valid statement in the eyes of law.

The Coram of judicial member C N Prasad and accountant member Manoj Kumar Aggarwal ruled, "There is no incriminating material in the case of the assessee that would show that the transactions under consideration were sham and there was any connection/nexus between the assessee and the group entities.