Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2015 (1) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2015 (1) TMI 1066 - AT - Income TaxAddition u/s 69 - Assessment u/s 153A - unaccounted investment - Held that:- Department could not bring on record any reliable material to prove that the assessee made actual investment of ₹ 3,25,51,000/- in the previous year relevant to Assessment Year 2005-06, ₹ 6,51,00,000/- in Assessment Year 2006- 07 and ₹ 3,25,50,000/- in Assessment Year 2007-08. As per the provisions of Section 69, before making an addition under that section, the onus is on the Revenue to bring on record the material to conclusively prove the factum of making an investment by the assessee and only thereafter the onus shifts upon the assessee to explain the nature and source of such investment. In the instant case, we find that the only reliable material which was brought on record by the Revenue was agreement to sale dated 18.01.2005. The assessee has not denied the fact that the agreement was executed by him also. The agreement only proves that ₹ 11,00,000/- was paid by the assessee on 18.01.2005 and agreed to pay the balance amount on future dates. In the facts of the instant case, the said agreement does not prove the balance agreed amount was actually paid at any time leave aside at the stipulated time. Therefore, in our considered view, the agreement is a material to conclude that investment of ₹ 11,00,000/- was made by the assessee on 18.01.2005 and for no further investment. Therefore, in the circumstance, the addition of an amount more than ₹ 11,00,000/- made in the Assessment Year 2005-06 and the amounts for which the additions were made in Assessment Year 2006-07 and 2007-08 are not sustainable. Further, in respect of ₹ 11,00,000/-, the assessee claimed that the amount was paid by cheque and the said cheque was taken back by the assessee; whereas, Shri Somabhai A. Prajapati in his statement claimed that ₹ 11,00,000/- was received by him in cash. We find from a reading of the agreement that nowhere the agreement shows that ₹ 11,00,000/- was paid by cheque. The assessee could not bring any material to show that ₹ 11,00,000/- was paid by him to Shri Somabhai A. Prajapati was by cheque and was not cash. In this circumstance, we find that the assessee making investment of ₹ 11,00,000/- is established and not even denied by the assessee. The assessee claimed source of the same from bank but the same could not be satisfactorily substantiated by the assessee. Therefore, in our considered view, addition to the extent of ₹ 11,00,000/- made in Assessment Year 2005-06 is justified and needs to be upheld. - Decided partly in favour of assessee for Assessment Year 2005-06 and allow the appeals of the assessee for Assessment Years 2006-07 and 2007-08.
|