Income Addition Based on Third-Party Disclosure Without Evidence Not Sustainable: ITAT

The ITAT (Income Tax Appellate Tribunal) ruled that "income addition based on third-party disclosure without evidence is not sustainable." The tribunal set aside an income addition made by the Assessing Officer solely relying on information or disclosures from a third party, without corroborating evidence or providing the assessee an opportunity to cross-examine the third party. This decision reinforces the principles of natural justice, emphasizing that additions to income must be supported by concrete, verifiable evidence directly linking the assessee to the alleged income.