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2017 (11) TMI 1553 - AT - Income TaxAddition u/s 69C - unexplained expenditure - Held that:- The assessee has not incurred expenditure in respect of which she has not been able to explain the source of such expenditure and hence the addition of ₹ 20,89,000/- is not tenable as the same amount of ₹ 20,89,000/- sum which is an amount received by the assessee and is thus fully explained and assessee has laid complete documentary evidences to establish the same as such, addition made and sustained is wholly unsustainable in law. Apart from above, the identity of the creditor and existence and identity cannot be doubted or disputed. Further merely because, such person on account of medical ground did not appear, but had duly filed all necessary detail, no adverse inference can be drawn against the assessee, as the power to enforce the attendance of a witness is with the AO. In fact it is settled law that if a creditor ignore the summons or don't appear before the AO could not be a ground to draw adverse inference against the assessee. In view of above, the addition in dispute is hereby deleted. Unexplained credit - Addition of sum received on 04.01.2011 from sale of plot at Nangloi, New Delhi - Held that:- The aforesaid sum of consideration had been received against the transfer made by the assessee through account payee cheque and same was also acknowledged by the assessee. Hence, the entire receipt is well explained and has not been doubted as an unexplained credit. The AO has again made no attempt to dispute the receipt through bank account of the vendee to whom the land was transferred which fact has duly been admitted by the transferee. In view of the above, the addition in dispute is hereby deleted. Amount received from sale of old furniture etc. - Held that:- Neither the identity of the creditor nor the creditworthiness can be disputed. Further merely because, such a person on account of medical ground did not appear in response to summons, but file all necessary detail, no adverse inference can be drawn against the assessee, as power to enforce the attendance of a witness is with the AO, as per settled law. In fact, it is settled law that if a creditor ignore the summons or don't appear before the AO could not be a ground to draw adverse inference against the assessee. In view of the in my opinion, since the assessee has discharged its burden and not an iota of material has been brought on record, except of harboring the suspicion, addition made by the AO and sustained by the learned CIT(A) is not tenable, hence, the same is deleted. Assessee appeal allowed.
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