HC upheld Section 40A(3) addition in absence of evidence against addition

P.V. Thomas Vs ITO (Kerala High Court) Introduction: The recent verdict of the Kerala High Court in the case of P.V. Thomas Vs ITO (Income Tax Officer) has significant implications for income tax assessments. Dated 02.08.2022, the judgment addresses the appeal (ITA No.22/COCH/2022) related to the assessment year 2015-2016 under the Income Tax Act. Detailed Analysis: The appellant, a dealer in used cars, filed a return of income in December 2015, declaring a total income of Rs.13,54,160/-. However, the assessment under Section 143 (3) of the Income Tax Act raised concerns. The authorities disal...