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Facts
The appellant-assessee is challenging an order where a protective addition of Rs. 9,72,62,630/- was made for assessment year 2017-18. This addition was based on a statement from Shri Mohit Garg, claiming the assessee paid him in cash for gold purchase, a transaction not reflected in the assessee's return.
Held
The Tribunal held that the protective addition was made solely on the statement of Shri Mohit Garg without any corroborative evidence linking the transaction to the assessee. The department failed to establish a connection between the PAN disclosed by Shri Mohit Garg and the assessee for the said transaction.
Key Issues
Whether a protective addition can be sustained solely on the uncorroborated statement of a third party without establishing a direct link to the assessee's transaction.
Sections Cited
132(4), 148, 142(1), 143(2), 144, 69, 143(3)
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, JAIPUR BENCHES,”B-Bench” JAIPUR
Before: SHRI GAGAN GOYAL, AM& SHRI NARINDER KUMAR, JM
As a result, this appeal is allowed and the impugned order passed by Learned CIT(A) is hereby set aside. File be consigned to the record room after the needful is done by the office. Order pronounced in the open court on 15/10/2025.