Addition For Extrapolated Wages Restricted to Date of Survey Due to Lack of Evidence: ITAT Deletes ₹1.02 Cr Addition

The ITAT has deleted a ₹1.02 crore addition made by the Assessing Officer (AO), restricting the addition for extrapolated wages to the date of a survey due to a lack of supporting evidence. The tribunal found that the AO's basis for extrapolation beyond the survey date was arbitrary and unsubstantiated. This ruling provides significant relief to the taxpayer, as it reinforces the principle that tax authorities cannot make additions based on presumptions. It highlights the need for concrete evidence to justify any action beyond the information gathered during a tax survey.