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| The Tax Publishers2020 TaxPub(DT) 2187 (Del-Trib) INCOME TAX ACT, 1961
Section 69
Where no satisfactory explanation was offered by assessee about nature and source of payment of cash, value of the investment in residential property was rightly deemed to be income of assessee for relevant assessment year.
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Income from undisclosed sources - Addition under section 69 - Unexplained investment in residential property -
Issue was as regards addition made under section 69 in relation to money paid for purchase of residential property. Considering incriminating material found by revenue of accepting on-money from different parties AO treated investment as unexplained. Assessee submitted that investment was made out of his past savings over years. Held: Since no satisfactory explanation was offered by assessee about nature and source of payment of cash, value of the investment was deemed to be income of assessee for relevant assessment year. Details given by assessee of withdrawal of amount of last years clearly suggested that assessee for his personal need. If cash of Rs. 5 lakhs was lying in his house, why he withdrew such petty amount from bank. Apparently, the withdrawals from the bank account is made for meeting the expenses and not for keeping the money at house. Hence, the explanation of the assessee that cash of Rs. 5 lakhs is deposited out of savings is not supported by any documentary evidence and against the preponderance of probability and deserves to be rejected.
REFERRED : Sumati Dayal v. CIT (1995) 214 ITR 801 (SC) : 1995 TaxPub(DT) 1173 (SC), McDowell and Co. Ltd. v. CTO (1985) 154 ITR 148 (SC) : 1985 TaxPub(DT) 1186 (SC) and CIT v. Durga Prasad More (1971) 82 ITR 540 (SC) : 1971 TaxPub(DT) 0375 (SC).
FAVOUR : Against the assessee.
A.Y. : 2011-12
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