ITAT Deletes Additions Due to Lack of Corroborative Evidence from Third-Party Documents

SVS Projects India Private Limited Vs ACIT (ITAT Hyderabad) Summary: The ITAT Hyderabad held that additions based solely on documents seized from a third party, without corroborative evidence, are unsustainable. In this case, the Assessing Officer relied on a diary and pen drive found during a search of another entity to allege unaccounted cash receipts by the assessee, even inflating figures by adding two zeros based on later-retracted statements of third-party employees. The Tribunal observed that such documents neither belonged to nor were found with the assessee, and therefore presumption...