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2014 (10) TMI 218 - AT - Income TaxUnexplained investment u/s 69 – Held that:- The AO made addition by holding that the assessee had neither furnished returns of income for the preceding years nor any details and evidences regarding past savings were furnished by the assessee - CIT(A) has rightly confirmed the addition by holding that average yearly withdrawal from bank during February 2000 to March 2005 comes to ₹ 1,41,800/-, thus entire pension income and other funds were consumed by the assessee during the earlier 5 years and there was a balance of ₹ 1,209/- only as on 31st March, 2005 - the pattern of withdrawal shows that the assessee was solely depended on the pension income and the moment pension income was credited to her bank account, the same was withdrawn in small amounts reflecting the actual consumption rather than the savings - had there been any surplus funds or savings, the same could have been in the form of bank deposits or FDRs but nothing of this kind of evidence was available with the assessee, therefore, it could not be believed that the assessee collected a sum of ₹ 1,35,000/- from her past savings during preceding period of 5 years. The assessee had not furnished details of withdrawals for household expenses neither during the assessment proceedings nor during the appellate proceedings, therefore, considering the old age of the assessee and other relevant factors like medical expenses etc. it can safely, be hold that the receipts from family pension as well as agricultural income were consumed by the assessee on household expenses and other day to day livelihood needs - it cannot be accepted that the assessee was actually in a position to accumulate savings from family pension and agricultural income - Therefore, the source of income of ₹ 1,35,000/- remained unexplained and the AO was fully justified in making addition to the assessee’s income u/s 69 of the Act – Decided against assessee. Advance receipt for sale of plots – Income treated as income from other sources - Nexus between the date of purchase of new property and the amount received by the assessee as advance - Held that:- Assessee purchased land from Smt. Subhadra Tyagi wife of Dr. S.C. Tyagi on 18.11.2005 and purchase price was ₹ 14,00,000 – all the sale deeds have been executed by the assessee after execution of sale deed in her favour (the assessee) i.e. after 18.11.2005 - In all the sale deeds executed by the assessee (seller) in favour of the purchasers it has been stipulated that the assessee (seller) has received sale consideration before respective witnesses, but the detail and date of receipt has not been clearly mentioned - there are some credit entries in their saving bank account reflecting some receipts but in absence of relevant detail of depositor and other documents such as cheque, demand draft or pay order, it cannot be ascertained that the amount so credited in the account of Dr. S.C. Tyagi and Smt. Subhadra Tyagi has been made by either the assessee or on the direction of the assessee by the said purchasers of plots - there was regular withdrawals of money ranging between ₹ 1,000/- to ₹ 15,000/- but during the financial year 2005 there is major withdrawal and the assessee has not submitted - the authorities below have not properly examined the claim and the submissions of the assessee that the assessee made investment of ₹ 12,50,000/- out of advance amount received from various purchasers as an advance which was directly deposited to the account of seller of the land to the assessee i.e. Smt. Subhadra Tyagi and her husband Dr. S.C. Tyagi – thus, the matter is to be remitted back to the AO for fresh adjudication – Decided in favour of revenue.
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