INCOME TAX ACT, 1961

Section 69

Income from undisclosed sources - Addition under section 69 - AO assumed existence of unexplained asset - No asset came into existence in assessee's name during the year

AO made addition under section 69 on account of unexplained investment made by assessee in purchase of land. CIT(A) deleted said addition and further, Tribunal upheld the decision of the CIT(A). Aggrieved, Revenue was in appeal. Held: CIT(A) recorded a finding that during year under consideration, no asset came into existence in the name of assessee, which was required to be shown in books of account. Therefore, the AO simply assumed certain facts, and assumed existence of unexplained asset, and made addition of the same under section 69. Accordingly, the Tribunal upheld the decision of the CIT(A). Thus, there was a concurrent finding of fact recorded by the CIT(A) as well as the Tribunal, that there was no material on record to prove conclusively that the investment made by the assessee had not been shown in the books of account and hence, the addition made under section 69 was rightly deleted.

REFERRED :

FAVOUR : In assessee's favour

A.Y. :

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