Section 68 Addition Crashes – ITAT Mumbai Says Suspicion & Investigation Wing Reports Cannot Replace Evidence

ITO Vs Parashar Projects Private Limited (ITAT Mumbai) The Mumbai ITAT upheld deletion of ₹3.33 crore addition made under section 68 towards alleged bogus share sale transactions, holding that the assessee had fully discharged the onus by producing audited balance sheets, investment schedules, sale notes, PAN details, confirmations, bank statements and income-tax records of purchasers. The Tribunal noted that the investments were reflected in the books since F.Y. 2006-07 and the reduction in investments during the year clearly established actual liquidation of shares. The Revenue had relied ...