Addition merely based on presumptions and assumptions is unsustainable

DCIT Vs Om Shakthy Agencies (Madras) Pvt. Ltd. (ITAT Chennai) ITAT Chennai held that addition based merely on presumptions and assumptions and without allowing cross-examination is unsustainable in law and liable to be set aside. Facts- The assessee is dealing in real estate and income arising therefrom constitutes business income for the assessee. The assessee admitted income of Rs.426.72 Lacs on turnover of Rs.2848.30 Lacs. The disallowance u/s 40A(3) stem from the fact that the assessee purchased lands in cash aggregating to Rs.263.56 Lacs from various persons. In the absence of any plausib...