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2023 (3) TMI 266 - AT - Income TaxAddition u/s 69 - unaccounted investment in purchase of property - Whether no unaccounted cash was ever invested by the assessee? - HELD THAT:- From the relevant part of the assessment order as well as the first appellate order, except copy of MoU, we are unable to see any other documentary evidence to show that the assessee along with her granddaughter Ms Vasudha Sharma invested Rs.50 lakh with the builder and only shown Rs.25 lakh banking transactions to the Department. For making addition u/s 69, it is the duty of the AO to establish by way of cogent and sustainable evidence that the assessee has invested his unaccounted money/income in purchase of property and, in the present case, the allegation of the AO based on copy of MoU cannot be held as sustainable and acceptable in absence of any other positive adverse material against the assessee establishing the factum of investment of Rs.50 lakh including alleged unaccounted investment of Rs.25 lakh in purchase of property. Assessee has successfully demonstrated that he only invested Rs.25 lakh with the builder M/s Gul Properties Pvt. Ltd. through banking channel and by way of a letter dated 12.07.2018 he requested the builder to refund the entire amount cancelling the booking. From the letter of the builder dated 21.08.2018 , it is also clear that the builder has refunded the amount by issuing two cheques through banking channel in the name of the assessee and his granddaughter totaling to Rs.25 lakh. We are unable to agree with the allegations made by the AO in the assessment order which were only based on doubts without any sound basis, hence, we also decline to agree with the observations of the ld.CIT ( A ) while confirming the baseless addition. The grounds raised by the assessee are allowed and the AO is directed to delete the addition.Appeal filed by the assessee is allowed.
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