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2021 (9) TMI 1075 - AT - Income TaxUnexplained expenditure u/s. 69C - Addition of expenditure incurred for the development expenses as claimed - addition of credits in appellant's bank account - assessee could not explain satisfactorily about the transactions undertaken by him for the purchase of properties and the AO examined in detail the transactions done from the bank account of the assessee - AO has not doubted the source of funds received by the assessee through banking channels, but, the AO has added the entire amount as unexplained u/s. 69C - HELD THAT:- When the assessee incurred any expenditure and no explanation offered about the source of such expenditure or part thereof, then the amount can be treated as unexplained expenditure. In the impugned case, the assessee has established the source of the funds, which was accepted by the AO. Failing to furnish the details of expenditure could not be presumed that it was an unexplained expenditure. On going through the paper book filed by the assessee, the assessee has submitted sale deeds, confirmations from SPR Infrastructure Pvt. Ltd. and SPR Publications pvt. Ltd. and other financial statements, we find that the addition made by the AO is not correct and the ld. CIT(A) after considering the documentary evidence filed by the assessee has rightly deleted the disallowance made by the AO. Thus, We uphold the order of the CIT(A) in deleting the disallowance made by the AO and dismiss the grounds raised by the assessee on this issue.
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