Section 69B of the Income-tax Act, 1961—Undisclosed investments—Addition made was justified n the absence of any material to show any nexus or co-relation between unaccounted cash receipts and payments.

Facts: Whether ITAT was right in law in holding that the assessee was entitled to set off gross unaccounted payments on certain transactions against unaccounted receipts for computing unexplained investment made by him in accordance with section 69B?

Held, that it is pertinent to note that the assessee did not furnish any detail or particular about availability of the funds from the unaccounted land deals during the course of assessment proceedings as recorded by the Assessing Officer. The assessee failed to furnish the basic and primary facts. Tribunal has also erred in discarding the fact of absence of any material to show that the assessee proving nexus or co-relation between unaccounted cash receipts and payments. Therefore, in such circumstances, it appears that AO has rightly held that assessee is not entitled to any claim of set off and all income as well as investment determined are liable to be considered without any set off against each other. In such circumstances, appeal was answered in favour of the Revenue. - CIT V/s MANOJBHAI BHUPATRAI VADODARIA - [2020] 27 ITCD Online 043 (GUJ)