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2021 (5) TMI 80 - AT - Income TaxUnexplained investment u/s 69 - HELD THAT:- Upon perusal of the entire set of documents as made available before us it is ascertained that payment were made to TIPL through banking channel. AO has failed to disprove such facts. The statement of TIPL confirming the payment of ₹ 3.50 crores made by the appellant supported by corroborating evidence being the return of income and the balance sheet of the year under consideration keeps no scope of questioning the genuineness of the payment made by the appellant. The source of payment made by the appellant has neither been doubted by the Ld. AO. Therefore, under the circumstances the provisions of Section 69 of the Act are not applicable in the absence of primary condition for invoking the said section that the investment made is not recorded in the books of accounts The ratio laid in the case of CIT vs. M.B. Patel [2013 (11) TMI 527 - GUJARAT HIGH COURT] is rightly applicable to the instant case; the investment made by the assessee were duly shown; the source of investment as made from the assessee’s account has neither been doubted by the Ld. AO. The plea of the Ld. AO of not being able to verify the genuineness of the transaction with TIPL in their absence cannot be said to be justified when all other evidences speak otherwise. The appellant company and the confirming parties as well regularly assessed to tax and the amount received is duly reflected in their books of accounts. Neither it is the case of the revenue that the declaration made by the confirming party through its director is false and, therefore, considering entire aspect of the matter the addition on account of unexplained investment is not sustainable in the eye of law fact of which has rightly been taken care of by the Ld. CIT(A) while deleting addition - Decided against revenue..
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