INCOME TAX ACT, 1961

Section 69

Income from undisclosed sources - Addition under section 69 - Unexplained investment -

Assessee along with his mother have purchased a residential and such property was, however, valued at Rs. 7,40,95,000. There was a search on Group concern wherein it was found that another property was purchased by some members of group concern at Rs. 1.80 crores as per sale deed and Rs. 5,66,40,600 was taken as money paid in cash on the basis of a seized document. Though there was no incriminating material relating to second property, AO based on documents recovered relating to first property drew an inference that purchase price was Rs. 5,92,76,000 i.e. Rs. 7,40,95,000 reduced by 20% as on 1.6.2007. On this premise, AO took the sale consideration at Rs. 5,92,76,000 and reduced the same by Rs. 1.55 crore being the registered amount and brought the balance of Rs. 4,37,76,000 as on money having paid in cash over and above the registered amount. AO apportioned the said amount between the mother and son and made an addition as unexplained investment under section 69. CIT(A) allowed the appeal of assessee. Held: Revenue failed to brought on record any material assailing the correctness of findings of CIT(A) and it was an established fact that nothing incriminatory was found in respect of property purchased by assesses during the search. Further, there was no evidence on record to show that first property was similar in all respect of property purchased by assessee. Thus, addition made by AO was liable to be deleted.

REFERRED :

FAVOUR : In assessee's favour

A.Y. :

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