The Hon’ble ITAT – Mumbai Bench in the case of Shri Mohan Thakur v. ACIT ITA No. 1434-37/Mum/2018 dated May 24, 2021 where addition was made under section 69 of the Act on account of information received from Australian Authorities pertaining to an alleged havala transaction, it was held that there is absolutely no other material in the hand of the A.O. of proving the addition in the hands of the assessee. Despite the assessee’s request, the copy of information received from Australian tax Authority has not been given to the assessee. In these circumstances, the addition made, which is based upon the information from a foreign source, without confronting the same to the assessee and without any corroborative material is not at all sustainable. [Para 11 of the Order]

“11. Upon careful consideration, we find that the addition is solely made on the basis of statement of the assessee’s son before Australian Tax Authorities and affidavit by the assessee before them that fund found in possession of the son were arranged by assessee by hawala transaction. When confronted by the investigation department of the Revenue, the assessee has rebutted the above Shr i Mohan Thakur 11 allegation. The rebuttal or refusal by the assessee has only been referred by the A.O. without bringing on record the actual rebuttal.

The case laws referred by the ld. Counsel of the assessee as above are germane and support the case of the assessee. Since the addition is not at all sustainbale as found by us hereinabove, the other aspects of the assessee’s challenge to the addition is only of academic interest. Hence, we are not dealing with the same.“