Addition by AO u/s 28(iv) of Income Tax Act unwarranted as Free Test Assets are Returned or Destroyed and

The ITAT ruled that the addition made by the Assessing Officer under Section 28(iv) of the Income Tax Act was unwarranted, as the free test assets had either been returned or destroyed, and software pricing was established by the Market Assessment Price. The tribunal highlighted the need for proper valuation and the basis for tax implications concerning free assets, affirming that mere assumptions without factual basis cannot be the basis for tax demands. This decision underscores the importance of justifiable assessments within the framework of the Income Tax Act, ensuring that taxpayers are not subjected to undue financial burdens based on conjectural evaluations.