ITAT Patna Judgments — February 2023

The Tribunal found that the assessee had not adequately substantiated the unsecured loans before the lower authorities. However, considering the materials placed before the Tribunal, it was deemed appropriate to give the assessee another opportunity to prove its claim.

The Tribunal held that the CIT's revisionary proceedings were not justifiable as the issues raised were factual and had already been examined by the AO during the assessment. The CIT failed to demonstrate that the AO's order was erroneous.

The Tribunal held that the addition made by the AO was not sustainable as there was no incriminating material found during the search to support the claim of bogus share application money. The AO failed to conduct independent verification and relied solely on an alleged report.