AO made S.69 Income Tax Addition based on Mere Suspicion: ITAT deletes Rs.2.25 Crore Addition

The Income Tax Appellate Tribunal (ITAT) deleted an addition of ₹2.25 crore made under Section 69 of the Income Tax Act, which was based on mere suspicion. The case involved an assessee who was accused of introducing unaccounted money into their books throughunexplained cash deposits. The ITAT found that the Assessing Officer (AO) had made the addition without concrete evidence and solely based on suspicion. The tribunal emphasized the need for tax authorities to substantiate their claims with solid evidence and not rely on conjecture. This decision provides relief to taxpayers facing similar allegations and underscores the importance of maintaining proper documentation and records to support their financial transactions.