The Tax Publishers2020 TaxPub(DT) 0740 (Mum-Trib)

INCOME TAX ACT, 1961

Section 69A

Assessee had been saddled with addition on account of unexplained paintings on aggregate basis for various group entities and therefore, in such a case, few of the painings would not be reflecting in stock-in-trade held by assessee. With these observations, matter was remanded back to AO for re-appreciate evidences furnished by the assessee in the light of adjudication. In Kavita Singh, Proprietress of Reflections [vide ITA No. 1242/Mum/2012, Order, dt. 8-12-2017] rendered under similar factual matrix wherein substantial additions were deleted finding strength in documentary evidences furnished by assessee in support of source of paintings.

Income from undisclosed sources - Addition under section 69A - Unexplained painting -

During search conducted at various offices of assessee company and residences of directors and members of the group. Costly painting were found and revenue alleged that assessee could not furnish satisfactory evidences of purchases thereof. Accordingly, AO made addition of Rs. 6.92 crores to total income on account of unexplained paintings. CIT(A) sustained addition on the ground that many of the paintings were not reflected as part of stock-in-trade of assessee.Held: Assessee had been saddled with addition on account of unexplained paintings on aggregate basis for various group entities and therefore, in such a case, few of the paintings would not be reflecting in stock-intrade held by assessee. With these observations, matter was remitted back to AO for re-appreciate evidences furnished by the assessee in the light of adjudication. In Kavita Singh, Proprietress of Reflections [vide ITA No. 1242/Mum/2012, Order, dt. 8-12-2017] rendered under similar factual matrix wherein substantial additions were deleted finding strength in documentary evidences furnished by assessee in support of source of paintings.

REFERRED : Kavita Singh v. Dy. CIT [ITA No. 1242/Mum/2012, dt. 8-10-2017] : 2017 TaxPub(DT) 5527 (Mum-Trib).

FAVOUR : Matter remanded.

A.Y. : 2008-09

IN THE ITAT, MUMBAI BENCH

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