Addition of unexplained investments must be based on credible, signed documents

Kanubhai Dhulabhai Patel Vs DCIT (ITAT Ahmedabad) The Income Tax Appellate Tribunal (ITAT), Ahmedabad bench, has partially allowed an appeal filed by assessee Kanubhai Dhulabhai Patel, deleting a significant portion of an addition made by the Assessing Officer (AO) for unexplained investments in land. The decision, pronounced on July 3, 2025, hinges on the unreliability of a draft Memorandum of Understanding (MOU) found during a survey, which was used as the sole basis for the addition. The case pertains to the Assessment Year 2010-11 and involves two separate additions for alleged unexplained...