ITAT Rules Employer Advances Cannot Be Treated as Unexplained Money Without Verification

Salil Sadanand Phadte Vs ITO (ITAT Mumbai) ITAT Mumbai: Employer Advances Can’t Be Branded as Unexplained Money Without Proper Verification; Matter Sent Back for Limited Remand Assessee, an employee, received substantial amounts from employer M/s Sanda Wellbeing Pvt. Ltd., which were claimed as advances for customer acquisition & business promotion expenses. AO treated ₹1.20 crore as unexplained money u/s 69A, mainly due to absence of vouchers & cash withdrawals, & CIT(A) confirmed the addition. Tribunal noted that employer’s own letters & books treated the sums as “adv...