INCOME TAX ACT, 1961

Section 69C

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

A survey action under section 133A was carried out in the business premises of the assessee wherein undisclosed income on account of underhand transactions in purchase of land as well as excess cash was found. The assessment under section 143(3) was completed by AO who added an amount on account of unexplained investment under section 69 in purchase of land. CIT(A) deleted the addition made by AO. Held: Tribunal had concluded that AO had made the additions on the basis of statement of the partner. However, the said statement was retracted on the very next day of completion of survey proceedings by way of duly signed affidavit, signed by all the partners. Applying the provisions of section 50C, addition was sought to be made. However, provisions of section 50C were not available to revenue as assessee was the purchaser of land. CIT(A) had rightly adopted this view holding that provisions of section 50C were not applicable on assessee being the purchaser of property and also during the survey proceedings no documentary evidence was found which may prove that assessee had made payment over and above the registered valuation of the property. In lack of any incriminating material, no addition was called for by AO.

REFERRED :

FAVOUR : In assessee's favour

A.Y. :

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