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2015 (12) TMI 1543 - AT - Income TaxUnexplained investment u/s 69 or unexplained credit u/s 68 - AO invoked the section 68, made an addition qua unexplained cash credit - whether the ld. CIT(A) has been correct in converting this charge of “unexplained cash credit” u/s 68 of the Act to that of “unexplained investment” u/s 69 of the Act - Held that:- It is not a case of typographical or a mere wrong mention of the Section. However, not able to agree with this observation of the ld. CIT(A). Section 292B of the Act and notification of the particular provisions of the Act to make certain addition is none than the jurisdictional matter going to the very root of the matter. If the provisions invoked are held to be non applicable, the very charge for making the addition does not survive and it cannot be converted to that of another entirely different provision. Therefore, the ld. CIT(A) has evidently erred in applying the provisions of section 69 of the Act, observing that the nature and source of cash deposit of ₹ 12,00,000/- could not be satisfactorily explained with credible or cogent evidence and hence the section of deemed income created by section 69 comes into operation. Section 69 of the Act talks of clauses where the assessee had made investments which are not recorded in the books of account, if any, maintained by him for any source of income and the assessee offers no explanation about the nature and source of investments or the explanation offered by him is not, in the opinion of the AO, satisfactory. Section 68 of the Act, on the other hand, concerns the instances where any sum is found credited in the books of the assessee and the source thereof remained unexplained. In the present case, the assessee is not shown to have made any “investment” and, therefore, the provisions of section 69 of the Act are entirely inapplicable. - Decided in favour of assessee.
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