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2016 (7) TMI 255 - AT - Income TaxUnexplained investments - Assessee was asked to explain the cash deposit of ₹ 91,50,000 - assessee explained that out of ₹ 91,50,000, source of ₹ 71,00,000 is Proceeds from sale of property by her husband - AO examined it and found sale deed is only for ₹ 21,20,000 - assessee explained balance sum of ₹ 49,80,000 received in cash - purchaser of the property denied any such payment - AO made addition as unexplained investment u/s 69 Held that:- Assessee's husband was maintaining only a NRE account in India where it is not possible to give credit for Indian rupees as per RBI/FEMA Rules. The fact that the assessee's husband had declared total sale consideration of ₹ 71,00,000 and had paid the capital gain tax is not in dispute. Therefore, taxing the same amount in the hands of assessee will tantamount to double taxation which is highly inappropriate, harsh and bad in law and not permitted. No material has been brought on record by any of the authorities below. The assessee had no other source of income from which cash could have been deposited by her in her bank account. Therefore, making the assumption that such a large sum has been deposited from the unexplained sources cannot be accepted whereas the assessee has submitted proper and reasoned explanation. In the circumstances and facts of the case, the Ld. CIT(A) is not justified in confirming the substantial part of deposit as income from unexplained investments in the hands of the assessee which is directed to be deleted - Decided in favour of assessee.
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