Addition merely based on loose paper and documents not sustainable

ACIT Vs Y.S.Jagan Mohan Reddy Kadapa (ITAT Hyderabad) ITAT Hyderabad held that addition on the basis of loose papers and documents found from the premises of third party is not tenable in the eye of law. Accordingly, appeal of the revenue is dismissed since addition not based on substantial evidence. Facts- During the course of assessment proceedings, AO noticed that a report was received from the Directorate of Investigation, Delhi, indicating payments in cash by Dalmia group to the assessee. Therefore, in the notice u/s 142(1) issued on 03.08.2013, it was brought to the notice of the assesse...