Sec. 69A of Income-tax Act, 1961— Income from undisclosed sources - A search and seizure under s. 132 was carried out in the M/s Diamond Hut Group of cases on 27th Oct., 2009. The assessee filed return of income declaring total income of Rs. 3,49,43,330 on 28th Dec., 2010. The statement of Director of Diamond Hut Group was also recorded under s. 133A of the Act wherein he offered a sum of Rs. 11.09 crores as additional income. His statement was reproduced in assessment order in which he after confronting with the seized material, offered a sum of Rs. 3,18,62,953 as additional income over and above the income under appeal and paid the taxes. The assessee, therefore, did not explained/specified the manner in which the undisclosed income was derived and also did not produce any document supporting the manner in which the undisclosed income of Rs. 3,18,62,953 was earned or was not substantiated the manner in which undisclosed income was derived. The AO made the additions in the assessment order which was deleted by the CIT(A). Tribunal dismissed the appeal of the revenue holding that ”In the absence of any material on record, particularly that books of account have not been rejected by the AO and that the surrendered amount is treated as income from other sources by CIT(A), there was no justification for the AO to make this addition“. - DY. CIT V/s DIAMOUND HUT INDIA (P.) LTD. - [2020] 206 TTJ 073 (ITAT-DELHI)