Uncorroborated Third-Party Chits Can’t Justify Addition: ITAT Delhi

DCIT Vs Bhola Nath Radha Krishan (ITAT Delhi) The Income Tax Appellate Tribunal (ITAT), Delhi Bench, has dismissed an appeal filed by the Deputy Commissioner of Income Tax (DCIT) against M/s. Bhola Nath Radha Krishan for the assessment year 2008-09. The Tribunal upheld the decision of the Commissioner of Income Tax (Appeals) [CIT(A)], which had deleted a significant addition of Rs. 1,35,00,000/- made by the Assessing Officer (AO). This addition comprised Rs. 27,00,000/- as unaccounted profit and Rs. 1,08,00,000/- as unaccounted investment, allegedly discovered during a search and seizure opera...