INCOME TAX ACT, 1961

Section 68

Income from undisclosed sources - Addition Under Section 68 - Whether addition on account of alleged unexplained investment in construction of factory building was justified in as much as the construction of building was over a span of three years -

Issue arose as to whether addition on account of alleged unexplained investment in construction of factory building was justified in as much as the construction of building was over a span of three years whereas addition on account of difference was made in one assessment year alone. Held: Counsel for revenue stated that record was not available and he was not in a position to deny that in such a case addition would have to be made for the period in which construction was carried out and could not be totaled at in a year. Assessee stated that he had certain material, which may enable revenue authorities below to decide this issue. Appeal was allowed and order qua addition was set aside and matter was remanded back to AO to work out the tax liability as per law after considering material which assessee might produce.

REFERRED :

FAVOUR : In assessee's favour by way of remand

A.Y. :

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