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2021 (5) TMI 59 - AT - Income TaxUnexplained investment under section 69 - Before CIT(A), it was explained that someone else’s cheques are fraudulently credited in the closed ledger account mentioned with the assessee’s broker - assessee submitted that he closed the account - HELD THAT:- Assessee has filed a complaint with Bombay Stock Exchange in respect of unauthorized trade in assessee’s account which was already closed. From the reply of advocate Dinesh Tiwari of Bombay Stock Exchange categorically stated that all the trades in the assessee’s account were operated by some shah family and also the outstanding liability of ₹8.06 crores in the said account was taken over by one Mr. Mahesh C Shah. Also, in the letter from the broker to the BSE, it has been confirmed that payments in assessee’s account has been received from Mr. Mahesh C Shah. Even, as per the Memorandum Of Understanding (MOU), which is signed between MK Shares and Stock brokers Ltd. and also Mahesh C Shah and his family, the outstanding liability of the assessee has been taken by Mr. Mahesh C Shah and this MOU is never signed by the assessee. It is also submitted that police complaint was filed against the said broker for unauthorized trade carried out towards assessee’s account and misusing his name. We are of the view that the Assessing Officer could not understand the fraudulent transaction carried out by one Shri Mahendra Shah and made addition of unexplained investment amounting to ₹ 3,35 crores under section 69 of the Act in the hands of the assessee. Hence, we are of the view that the CIT(A) has rightly deleted the addition. We confirm the order of CIT(A) and this appeal of Revenue is dismissed.
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