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2015 (3) TMI 845 - HC - Income TaxUnexplained investments - ITAT deleted the addition u/s 69 - Held that:- The CIT(A) appears to have taken into account the remand report. The assessee, in turn, appears to have relied upon letters written by the associate companies, each one of which had mentioned that the sums were paid directly to the asseseee’s vendor during the concerned period in the assessment year in question. The assessee’s case was that neither it nor the associate companies reflected these transactions in the books of accounts and consequently in the return, the investments were reflected in the stock inventory. This aspect has particularly been noticed by the CIT(A) whose order was made on 07.11.2012. We also notice that the appeal before the CIT(A) itself was instituted on 21.01.2010. In these circumstances, the CIT(A) was certainly within its right, before rendering its findings, to have additionally called for the returns for the subsequent years (when these entries were in fact reflected by the assessee in its returns) as well as the returns of the associate concerns. This, in our opinion, would have reflected the complete picture and either supported or falsified assessee’s contentions with respect to the inadvertence in omitting to make a mention of this investment at the relevant time in AY 2007-08. - Matter is remitted to the CIT(A) for specific finding on this question. It goes without saying that in the event of the CIT(A) being satisfied that these amounts were duly reflected as claimed by the assessee, applicability of Section 69 would be doubtful.- Decided in favour of revenue for statistical purposes.
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