INCOME TAX ACT, 1961

Section 68 read with section 69A

Income from undisclosed sources - Tribunal held that assessee was misguided by his employer to route cash from his bank account - Substantial evidence of source not produced by assessee -

Amount involved was Rs. 3,86,49,700 and question was whether it was unexplained income of assessee under section 68 read with section 69A. AO and CIT(A) held that it was unexplained income. Tribunal held otherwise stating “assessee was mis-utilized by his employer to route the cash through his bank account”. Held: What was the source of this money, to whom this amount was transferred immediately after it was deposited, the manner of transfer, the way the transferred fund was utilised have not been discussed at all by the Tribunal. The onus is on the assessee to explain, otherwise it would be treated as unexplained income in his account. A speculative assertion by Tribunal that since the money came in and went out simultaneously would not absolve the assessee, unless substantial evidence is led by him to show the source of the fund and the application thereof. Thus, in the interest of justice order was set aside and matter was remanded for fresh determination.

REFERRED :

FAVOUR : Matter remanded

A.Y. :

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