The Tax Publishers2020 TaxPub(DT) 4892 (Del-Trib)

INCOME TAX ACT, 1961

Section 69B

There was no justification by AO to make any addition against the assessee as unexplained investment in purchase of immovable property as assessee had duly discharged the onus of explanation of the source of investment made.

Income from undisclosed sources - Addition under section 69B - Unexplained investment - Source of investment explained

AO noted that no plausible explanation was filed by assessee of investment made in purchase of immovable property of Rs. 25 Lakhs. He, however, accepted the source of Rs. 18 lakhs as were from agricultural activity and balance of Rs. 7,67,500 which include registration expenses was treated as unexplained investment and addition was made accordingly. Held: The agricultural land purchased by the assessee was for a consideration of Rs. 50 lakhs, however, at the time of execution of the sale deed, Rs. 30 lakhs was paid by assessee and other co-owner and the share of the assessee comes to Rs. 15 lakhs only and if the stamp charges are also added, it would make a total of Rs. 15,67,500 which is below the amount of Rs. 18 lakhs accepted as source of income from agricultural activity by AO for the purpose of making investment. Thus, there was no justification by AO to make any addition against the assessee.

REFERRED :

FAVOUR : In assessee's favour

A.Y. : 2010-2011



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