Addition based on baseless allegation which cannot be proved is unsustainable

ACIT Vs Subhash Chand Jain (ITAT Delhi)

ITAT Delhi held that the revenue itself is not very sure of the receipt of the cash nor there was any evidence. Accordingly, addition based on baseless allegation which cannot be proved is unsustainable.

Facts- AO disallowed 30% of the direct expense. AO held that the assessee has claimed direct expenses (Purchase of construction material) of Rs. 31,65,607/-. The assessee could not produce bills of the said expenditure nor the bank a

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