AO’s Lack of Independent Inquiry Invalidates Unexplained Investment addition

ACIT Vs Karsan Bhai Khimabhai Patel (ITAT Delhi) Introduction: In the case of ACIT Vs Karsan Bhai Khimabhai Patel, the Income Tax Appellate Tribunal (ITAT) in Delhi dealt with various additions made by the Assessing Officer (AO) during an assessment for the year 2011-12. The key issues revolved around the deletion of additions related to unexplained investment and capital gains. This article provides an analysis of the ITAT’s decision, which primarily focused on the lack of independent inquiry by the AO. Background: The case stemmed from a search and seizure operation conducted under Se...