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The assessee made statement during thesearchand surrendered Rs. 100,00,000/ which is without any basis due to incomplete records, mistaken facts and believes. The department has not found any single evidence in relation to amount spent more than amount declared in construction activities before the A.O. and produced books of accounts before the AO, therefore, no adverse inference can be drawn in this regard.

Shanti Prime Publication Pvt. Ltd.

Sec. 69 & 69A of Income Tax Act, 1961—Income from undisclosed sources -Addition made was deleted as revenue had not discharged their burden of proof u/s 69 for making addition as it has not been established with corroborating evidences.

Facts: Assessee challenged the order passed by AO in which additions were made under section 69 before the CIT(A). CIT(A) gave partial relief with regard to nature of income and upheld the addition of Rs. 4,75,000/- by treating the same as income from undisclosed sources. Against the order of CIT(A), there is no appeal filed by the department, however, against the impugned appellate order of CIT(A), the assessee is in present appeal before Tribunal.

Held, that before making any addition for unexplained investment, it is first to be established by AO that (i) any investment was made by assessee and (ii) which is not recorded and (iii) for which there is no explanation for source of making such investment. However, both AO as well as CIT(A) had not discharged their burden of proof u/s 69 for making addition as it has not been established with corroborating evidences that there was any investment of Rs. 1 Crore by the assessee in construction activities as per the case attempted to be made by them on the basis of wrong inference from the statement of the assessee recorded during search. The first point of inquiry for making impugned addition by the AO is only wrong inference from the statement recorded during search, which stands retracted while filing return of income on account of the fact that there was no such investment and neither there was no such evidences found during search, thus, addition made was deleted. SATYA NARAYAN CHOUDHARY [2020] 80 ITR (TRIB) 095 (ITAT-JODHPUR)

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