AO adds Rs. 15 Lakh for Alleged Fake Loan given Based on Third-Party Information: ITAT deletes Addition Citing Genuine Transaction

The Income Tax Appellate Tribunal (ITAT) deleted an addition of Rs. 15 lakh made by the Assessing Officer (AO) for an alleged fake loan based on third-party information. The taxpayer had provided evidence to substantiate the genuineness of the loan transaction, including bank statements and loan agreements. The ITAT found that the AO had relied on unverified third-party information and had not conducted a proper inquiry. This decision highlights the importance of thorough verification and substantiation of claims before making additions based on third-party information.