Political contribution deductions require assessee-specific proof before cash-back allegations can justify disallowance or unexplained-money additions...
ITAT vacated and set aside the addition of Rs. 5.19 crore made by the AO under ss. 69A/69C, holding that the impugned quantitative discrepancies in purchases, sales and closing stock arose from the AO's failure to appreciate that the opening stock of the parent item included branded sub-stock, and from adoption of distorted figures. The Tribunal found the assessee's VAT return summaries corroborated the reported purchases and sales for FY 2016-17 and concluded the AO's adverse inferences lacked basis. Consequently, the CIT(A)'s order sustaining the addition was quashed and the appeal of the assessee was allowed, with the impugned assessment addition vacated.
ITAT vacated and set aside the addition of Rs. 5.19 crore made by the AO under ss. 69A/69C, holding that the impugned quantitative discrepancies in purchases, sales and closing stock arose from the AO's failure to appreciate that the opening stock of the parent item included branded sub-stock, and from adoption of distorted figures. The Tribunal found the assessee's VAT return summaries corroborated the reported purchases and sales for FY 2016-17 and concluded the AO's adverse inferences lacked basis. Consequently, the CIT(A)'s order sustaining the addition was quashed and the appeal of the assessee was allowed, with the impugned assessment addition vacated.
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