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2023 (3) TMI 659 - AT - Income TaxAddition u/s 68 - assessee HUF suffered heavy loss from speculation business for which payment of the heavy losses the assessee had shown excess income in his ITR from undisclosed sources - HELD THAT:- AO did not reject the books of account of the assessee. The assessee had filed complete details and discharged his primary burden and the AO had not made further enquiry. It is also noteworthy to mention that in the case of CIT vs P.K. Noorjahan [1997 (1) TMI 6 - SUPREME COURT] held that if explanation is dissatisfactory even though the addition is not sustainable and that provision of Section 68 is discretionary and discretion must be used as per law and decided judgements and not according to the presumption. Since the assessee has submitted the entire details, books of accounts etc. and the AO did not reject the books of account of the assessee, hence the addition so made on presumption basis does not support in view of the decision of Hon’ble Supreme Court in the case of CIT vs P.K. Noorjahan (supra). Therefore, we do not concur with the findings of the ld. CIT(A) and this Ground No. 2 of the assessee is allowed. Addition u/s 68 - undisclosed source - assessee filed affidavit relating deposit of Khem Chand Khatri HUF but considered Rs.1,00,000/- in name of Khem Chand Khatri (Ind.) and remaining not considered and ld. CIT(A) sustained addition - HELD THAT:- As in the case of Shweta Goyal [2021 (4) TMI 398 - ITAT JAIPUR] wherein the Bench has observed once the AO has examined the documents so produced by the assessee and recorded his satisfaction regarding the identity of the donors, the genuineness of the gifts and the source of such gifts, the assessee has discharged the necessary onus cast on her and no addition can be made in her hand - hence, the addition so made is deleted. Hon’ble Supreme Court in the case of M/s. Mehta Parikh & Co.[1956 (5) TMI 4 - SUPREME COURT] wherein the head note is ‘’Income Tax – Income from undisclosed sources- assessment assessee’s explanation based on accounts supported by affidavit, Accounts accepted as genuine and statements in affidavits not controverted- Finding based on no evidence- Inference from proved or admitted facts-If question of law – Principle of interference from Income Tax Act- Indian Income Tax Act (XI of 1922, ss 62(3), 26A. The Bench taking into consideration the submissions of the assessee and the case laws cited above do not concur with the findings of the lower authorities in disallowing the addition so made amounting u/s 68. Decided in favour of assessee.
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