AO Relied on Bank Account Not Admitted by Taxpayer: ITAT Quashes Rs. 4 Crore Addition

The ITAT quashed an addition made by the AO, noting that the AO relied on a bank account that was not admitted by the taxpayer. The tribunal emphasized that assessments must be based on evidence that is acknowledged and verifiable. Relying on unverified or disputed bank account details is not permissible in tax assessments. This ruling protects taxpayers from additions based on unsubstantiated information. It reinforces the principle that tax authorities must rely on credible and admitted evidence.