Addition based on third-party diary notations without corroboration invalid

DCIT Vs Bommidala Realty Ltd. (ITAT Visakhapatnam) In a significant ruling, the Income Tax Appellate Tribunal (ITAT), Visakhapatnam bench, has dismissed an appeal by the Revenue against an order that deleted an addition of ₹2.85 crores to the income of M/s. Bommidala Realty Ltd. The addition was made by the Assessing Officer (AO) based on notations found in a diary seized from the purchaser of a property, which the AO interpreted as ‘on money’ received by the seller over and above the registered sale consideration. The case, DCIT Vs Bommidala Realty Ltd., for the Assessment Year ...