AO cannot make addition/assessment of the alleged income purely based on suspicion

Last updated: 10 November 2021
Quick Summary
The Income Tax Appellate Tribunal has ruled that tax authorities cannot make additions or assessments based solely on suspicion. In this case, the assessee explained cash deposits in their bank accounts as being sourced from past savings and withdrawals. The Tribunal found that the Assessing Officer (AO) had incorrectly considered irrelevant opening balances and failed to prove that the available cash was utilised elsewhere, especially when the assessee's cash book and cash flow statement were not rejected.

Court :
ITAT Jaipur

Brief :
This is an appeal filed by the assessee against the order of ld. CIT(A), Kota dated 06.03.2019

Citation :
ITA No. 660/JP/2019

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