Income Tax Addition cannot Be based Solely on unsubstantiated Loose Slips

ITO Vs Ramachandra Setty & Sons (ITAT Bangalore) In a significant ruling, the Income Tax Appellate Tribunal (ITAT) in Bangalore addressed the case of ITO vs. Ramachandra Setty & Sons, highlighting the necessity for solid evidence when making income tax additions. The tribunal underscored that additions cannot be based solely on unsubstantiated loose slips, stressing the importance of corroborative material evidence. The assessee, Ramachandra Setty & Sons, argued that the statement made during the search action under Section 132(4) of the Income Tax Act held no evidentiary value. Th...