Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2020 (10) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2020 (10) TMI 786 - AT - Income TaxUnexplained investment u/s 69 - Material seized in survey action u/s. 133A - verify the source of the investment the case of the assessee was reopened and notice u/s. 147 - source of the fund invested by the assessee has flowed from the partnership firm M/s. KSR Constructions wherein the assessee’s spouse is a partner - HELD THAT:- Assessee does not have any proximity with M/s. KSR Constructions other than the fact that her spouse is one of the partners in the firm. Amount advanced by M/s. KSR Constructions to the assessee shall be obviously treated as the amount withdrawn by the assessee’s spouse from the firm which has to be debited to the assessee’s spouse’s capital account in the firm’s books of account. Just because the books of accounts of the assessee’s firm and the assessee’s spouse has not been properly maintained or incomplete the nature of the transaction does not change. Amount advanced by M/s. KSR Constructions to the assessee has to be construed as the amount given by M/s. KSR Constructions on behalf of the assessee’s spouse. Hence, the first proviso of section 56(2)(vi) shall come into operation in the case of the assessee and accordingly the amount received by the assessee shall be treated as a gift received by the assessee from her spouse. Direct the Ld. AO to delete the addition made in the hands of the assessee invoking the provisions of section 69 of the Act which is further confirmed by the Ld. CIT (A). - Decided in favour of assessee.
|