Summary
- The ITAT Mumbai has allowed Grishma Hemanshu Mody's appeal, directing the deletion of a ₹25 lakh addition made under Section 68 of the Income-tax Act for Assessment Year 2011-12.
- The addition was based on a retracted statement from the lender's director, which the Tribunal found insufficient to justify the assessment.
- The Tribunal emphasized that the Assessing Officer failed to prove that the loan was merely an accommodation entry, as required by Section 68.
- This ruling underscores the importance of substantiating claims with credible evidence in tax assessments, particularly when retractions are involved.
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