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2005 (1) TMI 69 - HC - Income TaxUnexplained investment - In reassessment order, AO held (i) that the book result of the appellant can never be relied upon as true and correct and as such the total income of the appellant ought to be determined on estimate by invoking section 145 and (ii) that an investment of Rs. 2,70,421 made by the appellant remained unexplained and is treated as deemed income of the appellant as per the provision of section 69 – Held that, unless the requirements of section 69 are strictly satisfied by a finding by the AO on relevant materials that the appellant has actually made some unexplained investments in stock-in-trade during the financial year 1988-89 to the tune of Rs. 2,70,421, section 69 cannot be applied to treat the said sum of Rs. 2,70,421 as income of the appellant for the AY 1989-90. In the facts and circumstances of the case, therefore, the addition of Rs. 2,70,421 by applying section 69 is not legal and justified
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