No Proof of Accommodation Entries, ₹3.62 Cr Addition Unsustainable

ITO Vs Nimit Agarwal (ITAT Ahmedabad) The Income Tax Appellate Tribunal (ITAT), Ahmedabad, has dismissed an appeal from the Income Tax Department, reinforcing a key legal principle that tax additions cannot be made without sufficient evidence. The ruling, pronounced on July 23, 2025, sided with assessee Nimit Agarwal, upholding the deletion of a substantial addition of ₹3,62,60,000/- that had been made to his income. The tribunal found that the department failed to provide the necessary proof to substantiate its claim of unexplained accommodation entries. Reassessment Followed Third-Party S...