AO not authorized to make additions merely on presumptions

Brief of the Case ITAT Mumbai held In the case of The ACIT vs. M/s Sandeep Shrivastava that AO is not authorized to make any addition merely on account of presumption. In this case because the assessee is Share holder and Director of the company, which sold the property, the assessing officer has presumed that the assessee has derived benefit from the transaction of purchase of property for the reason that there was a difference between the sale consideration and the value determined for stamp duty purposes. Also, the AO was not sure as to the section under which the said difference is assessa...