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Informative

Reassessment without Tangible Material Invalid: ITAT deletes Rs.10 Lakh Cash Credit Addition

Update / Judgement Date

10 Apr 2025

Source

Taxscan

Author

Team — WCP Legal Desk

Reading Time

1 min read

Appeal Against OrderIncome Tax

The ITAT (Income Tax Appellate Tribunal) deleted a ₹10 lakh cash credit addition, finding the reassessment to be invalid due to the absence of tangible material. The tribunal held that for a reassessment to be valid, the tax authorities must have possessed credible and tangible evidence suggesting income had escaped assessment. In this case, the addition based on cash credit was deemed unsustainable due to the lack of such supporting material.