Electronic WhatsApp evidence without authentication or independent corroboration cannot sustain an unexplained-investment addition based on third-part...
Mutual current-account transactions excluded from deemed dividend treatment where no fresh borrowing arose; unsupported unsecured-loan addition also f...
When the Revenue alleged receipt of accommodation entries through bogus billing, the onus remained on it to prove the impugned transaction with reliable evidence, and the addition could not rest on unverified investigation material. The assessee explained that there was no purchase or sale with the concern during the year and that the receipts were towards earlier outstanding dues, supported by its ledger account; the Revenue did not disprove that explanation or establish the alleged entry in the assessee's case. Reliance on an undisclosed statement, without supplying it to the assessee or granting cross-examination, also breached natural justice. The ITAT therefore deleted the entire addition.
When the Revenue alleged receipt of accommodation entries through bogus billing, the onus remained on it to prove the impugned transaction with reliable evidence, and the addition could not rest on unverified investigation material. The assessee explained that there was no purchase or sale with the concern during the year and that the receipts were towards earlier outstanding dues, supported by its ledger account; the Revenue did not disprove that explanation or establish the alleged entry in the assessee's case. Reliance on an undisclosed statement, without supplying it to the assessee or granting cross-examination, also breached natural justice. The ITAT therefore deleted the entire addition.
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