Unexplained expenditure addition based on suspicion without independent enquiry cannot be sustained

DCIT Vs Shapoorji Pallonji And Company Pvt. Ltd (ITAT Mumbai)

ITAT Mumbai held that addition towards unexplained expenditure merely on the basis of suspicion based on information received from another authority without independent enquiry cannot be sustained. Accordingly, appeal of revenue dismissed.

Facts- The case of the assessee was reopened under section 148 of the Income Tax Act for the reason that payments made by the assessee to one of the contractors i.e. Smt. Mayaben Vijay Parmar for manpower / labour services are unexplained and non-genuine. CIT(A)

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