https://www.taxtmi.com/caselaws?id=755671 ITAT Chennai deleted addition of Rs. 5 crores alleged as on-money in property sale transaction. The addition was based on contradictory statements by a related party who retracted his initial statement within three months, claiming different loan amounts and sources. The tribunal held that such inconsistent statements lacked credibility and could not support the addition without corroborating evidence. The AO failed to conduct independent valuation of the property or refer it to a valuation officer, relying solely on unreliable third-party statements. The tribunal emphasized that additions cannot be made on mere presumption or suspicion, requiring cogent positive evidence. The assessee's appeal was allowed. en-us Wed, 10 Jul 2024 00:00:00 +0530 Wed, 17 Jul 2024 08:06:24 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=755671 ITAT Chennai deleted addition of Rs. 5 crores alleged as on-money in property sale transaction. The addition was based on contradictory statements by a related party who retracted his initial statement within three months, claiming different loan amounts and sources. The tribunal held that such inconsistent statements lacked credibility and could not support the addition without corroborating evidence. The AO failed to conduct independent valuation of the property or refer it to a valuation officer, relying solely on unreliable third-party statements. The tribunal emphasized that additions cannot be made on mere presumption or suspicion, requiring cogent positive evidence. The assessee's appeal was allowed. Case-Laws Income Tax Wed, 10 Jul 2024 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=755671