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2023 (8) TMI 920 - AT - Income TaxUnexplained investment/unexplained cash credit under section 68 & 69 - What's the source of investment in the purchase of property? - Assessee submitted that it was out of credits and repayment of loan given by the assessee to the respective parties during previous financial period - HELD THAT:- AO made addition by invoking provisions of 68 & 69 simultaneously without specifying as to whether he wants to treat the impugned amount as unexplained investment or as unexplained credit. CIT(A) uphold the addition by treating the same as unexplained investment u/s. 69 of the Act. On the other hand, as we have discussed above in detail, based on uncontroverted documentary evidence filed by the assessee, that the creditworthiness of all four lenders and genuineness of transactions is clearly established by the assessee and there is no iota of doubt in this regard. Therefore, no addition is called for on account of baseless allegation of unexplained investment by the assessee u/s. 69 - Accordingly, the main effective grounds of assessee are allowed and AO is directed to delete the addition. Appeal of the assessee is allowed.
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