31000% Increase in Value Of Shares is Highly Suspicious But Cannot Take Place Of Evidence: ITAT Kolkata

In the case of Prakash Chand Bhutoria vs. ITO, ITAT Kolkata has held that:

The AO further relies on the shop increase of 31000% of the value of shares over the period of 2 years. Though this is highly suspicious, it cannot take the place of evidence. The Hon’ble Supreme Court has stated that suspicion however strong cannot be the basis for making an addition. The evidence produced by the assessee listed above proves his case and the AO could not controvert the same by bringing on record any evidence. The evidence said to have been collected by the DIT (INV.), Kolkata and the report is not produced before this Bench.

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