Income Tax Addition for Turnover Mismatch Set Aside Due to Lack of Evidence: ITAT Deletes Disallowance under Section 40A(3) as Income was Estimated

The ITAT set aside an income tax addition for turnover mismatch due to a lack of evidence. The tribunal also deleted a disallowance under Section 40A(3) as the income was estimated. The ITAT's decision emphasizes the importance of providing proper evidence to support additions to income. In the absence of such evidence, and when income is already estimated, disallowances based on assumptions may not be sustainable. This ruling provides relief to the assessee based on the lack of concrete proof.