AO Can't Make Additions Solely Based On Retracted Statement Of Third-Parties If Assessee Has Claimed Opposite: Chennai ITAT

In a recent Chennai ITAT case, the AO's additions based on retracted statements from third parties were contested by the assessee. The tribunal ruled that such additions couldn't stand solely on retracted statements without independent corroborative evidence. This decision underscores the importance of substantiating claims with reliable evidence in income tax assessments, aligning with principles of natural justice and fair play.