INCOME TAX ACT, 1961

Section 69

Income from undisclosed sources - Addition under section 69 - Additions on account of alleged unexplained investment and on account of capital from undisclosed sources - Evidences brought on record by assessee being not considered

AO received information that assessee made investment in cash for purchase of a commercial space. Accordingly, the AO asked the assessee to furnish details/source of such investments, however, in absence of complete details of the source of investments, the AO made addition on account of alleged unexplained investment in the commercial property. Further, he also made an addition on account of capital from undisclosed sources.Held: It was found that investment made by assessee in cash was duly explained to have been made out of his personal savings and in order to substantiate the same, copy of cash flow statements were filed. Further, the assessee also explained introduction of capital by stating that he received money from his father in law, amount transferred from minor son's, minor daughter's and wife's saving account apart from dividend income and mutual fund receipts. However, the AO as well as the CIT (A) both did not look into the evidences brought on record by the assessee. Further, the CIT (A) also had not given any cogent reason as to why said additions would sustain. Therefore, the matter was remanded to the AO for fresh adjudication after verifying the evidences produced by the assessee.

REFERRED :

FAVOUR : Matter remanded.

A.Y. :

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