Addition based on loose paper without corroborative material not sustainable

Tara Health Foods Ltd Vs DCIT (ITAT Chandigarh) ITAT Chandigarh held that addition on the basis of loose paper without any corroborative material is not sustainable in law. Accordingly, addition is directed to be deleted and appeal is allowed. Facts- A search u/s 132 of the Income Tax Act was conducted at the business premises of M/s Tara Health Foods Ltd. On 12.10.2010. Accordingly, a notice u/s 153A was issued and served upon the assessee. Based on loose paper, AO made an addition of Rs.7 Crore to the total income of the assessee. CIT(A) dismissed the appeal. Being aggrieved, the present app...