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Informative

Unexplained Income Addition of ₹5.78 Lakh: ITAT Orders AO to Delete Addition Based on Past Savings Explanation

Update / Judgement Date

30 Jan 2025

Source

Taxscan

Author

Team — WCP Legal Desk

Reading Time

1 min read

Income Tax

In a case involving unexplained income, the ITAT ordered the AO to delete an addition based on past savings explanation. The taxpayer had shown substantial savings from earlier years and explained the source of income, which the ITAT accepted. The Tribunal emphasized that the income should not be added without clear proof of unaccounted funds.