ITAT Deletes Unexplained Investment Addition as Payments Were Fully Traceable Through Banking Channels

ITO 23(2)(6) Vs Paresh Mulayamchand Panday (ITAT Mumbai) The Revenue appealed against the order of the Commissioner of Income Tax (Appeals) deleting additions made under Sections 69 and 56(2)(x) for Assessment Year 2020-21. The assessee had filed a return declaring income of Rs. 10,36,854, and the case was selected for scrutiny. During assessment, the Assessing Officer observed that the assessee had paid Rs. 1 crore to a developer and Rs. 25 lakh to an outgoing tenant under a Permanent Alternate Accommodation Agreement. In the absence of satisfactory responses during assessment proceedings, th...