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2016 (3) TMI 813 - AT - Income TaxUndisclosed investments - Held that:- All the additions deserve to be set aside to the file of Assessing Officer for re-adjudication because at the time of assessment proceedings neither the Assessing Officer was possessing the clinching evidences which could exhibit the unexplained investments exclusively in the hands of assessee nor the assessee could file his explanation with regard to the allegations posed before him on the strength of Panchnama of ACB. It is pertinent to observe that prosecution in the criminal case failed to establish the possession of disproportionate assets by the assessee, meaning thereby the evidence collected by the prosecution was not of that nature which could satisfy the court about unexplained investment by the accused. Bearing this fact in mind, when we perused the assessment orders then it revealed that AO has relied upon the Panchnama/charge sheet prepared by prosecution. On due consideration of these facts we are of the view that it is for the ld. AO to first lay his hands on an evidence which shows unexplained investment by the assessee. The ld. AO thereafter supposed to call upon the explanation of the assessee qua that investment or any assets possessed by him. If the AO is not satisfied with the explanation of the assessee then addition in the hands of assessee can be made. The ld. Assessing Officer shall decide the issues in accordance with law keeping in view the decision of the Special Judge, ACB.
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