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2021 (10) TMI 498 - AT - Income TaxAddition u/s 68 - unexplained cash credit - HELD THAT:- Under section 68 of the Act, the AO has power to make addition of any sum found credited in the books of account of the assessee maintained for any previous year, as income of the assessee of that previous year if the assessee fails to explain about the nature and source thereof or the explanation offered by the assessee is not satisfactory in the opinion of the AO. In the present case, CIT(A) has confirmed the addition made by the AO on account of opening capital balance as on 01.04.2013. AO has already reopened the returns of the assessee for the earlier assessment years including the assessment year 2013-14 and made additions. Under these circumstances, CIT(A) has wrongly confirmed the addition ignoring that the credit entry in question does not pertain to the year relevant to the assessment year under consideration - we hold that the action of the Ld. CIT(A) is not in accordance with the provisions of the Act and contrary to the ratio laid down in the cases discussed above - allow this ground of appeal and set aside the findings of the Ld. CIT(A) and direct the AO to delete the addition. Unexplained investment u/s 69 - Whether assessee has explained the source of payments made towards installments of home loan? - HELD THAT:- As per the said statement of account, the cheques received from M/s Prem Oil Store from time to time were deposited in assessee’s account and thereafter the amounts of EMI were transferred to the loan account through cheques. So, the assessee has proved the source of amount paid towards repayment of home loan - CIT(A) has sustained the addition inter alia on the ground that the assessee has filed copy of account of M/s Prem Oil Store as per which the said firm has paid the tanker rent in cash. Since the assessee has explained the source of the said amount on the basis of entries in the bank account, we find merit in the contention of CIT(A) has sustained the said addition ignoring the documentary evidence i.e., entries in the statement of bank account of the assessee. On the other hand, there is no reference of the statement of bank account of the assessee in the assessment order - we set aside the findings of the Ld. CIT(A) and send this issue back to the AO with the direction to delete the addition after verification of entries in the statement of bank account of the assessee. Assessee is partly allowed for statistical purposes.
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