INCOME TAX ACT, 1961

Section 69

Income from undisclosed sources - Addition under section 69 - Investment made in properties explained before AO to be of person out of gift/loan - Before CIT(A) assessee stated that investment made out of remittances made by brother from abroad

Assessee purchased two properties. In respect of source of investment assessee categorically stated that property in question was purchased out of his own resources, i.e., loan taken from bank and loan/gifts from various persons. In support of loan/gifts, assessee also filed confirmation of person who had given loan to assessee. AO did not accept this and made addition under section 69. Before CIT(A) assessee demonstrated with evidence that brother of assessee had been remitting money from Kuwait and cash was being withdrawn by father of assessee. CIT(A) did not accept assessee's contention on the ground that assessee had been changing his stand. Held: It is a fact that assessee had been changing his stand but it is also fact that assessee had filed certain evidences in support of his contention that the brother of assessee remitted certain amounts from Kuwait who happened to be co-owner of the properties in question. Moreover, there was no finding by AO and CIT(A) as to what happened to money which assessee claimed to have received as gift/loan. Under these facts, matter was remanded back to CIT(A) to decide afresh after examining the aspect of remittance by co-owner of property and also the loan/gift claimed by assessee.

REFERRED :

FAVOUR : Matter remanded.

A.Y. : 2014-15

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