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TMI Blog2012 (5) TMI 98X X X X Extracts X X X X X X X X Extracts X X X X ..... ts of mutual funds, the detail of which is as under:- Name of Mutual fund Amount invested (Rs.) 1 Standard charter Mutual Fund 1200000 2 Reliance Mutual Fund 300000 3 HDFC Mutual Fund 250000 Total 1750000 3. On verification, AO found that aforesaid investments are not reflected in the books of accounts of the assessee. He accordingly asked the assessee to explain why the sum of Rs. 17,50,000/- should not be treated as unexplained investment and added to her total income as per the provisions of sec. 69B of the I.T. Act,1961. In reply, vide letter dated 08-012-2008, AR of the assessee submitted as under:- ".. Regarding the investments in mutual funds and source thereof it is to submit that du ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ssessee has accepted either a loan or gift from her husband. The assessee has also not furnished substantial evidences that proved that the assessee has accepted either a loan or gift from her husband. Further on verification of the account of her husband submitted along with her AR's reply, it is seen that all the payments allegedly paid in the name of her wife for acquiring units of aforesaid mutual fund are made in cash. As such, the genuineness and correctness of transaction is in question and it is seeming that these accounts have been prepared afterthought. 7. As discussed above, the assessee has not proved the genuineness of the sources of investments in aforesaid mutual funds with cogent evidences. I am therefore of the opinion tha ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... assessed the total income at Rs. 18,93,780/- & agriculture income at Rs. 60,789/- vide order u/s. 143(3) dated 11-12-2008 wherein he made the following additions: (a) Standard Chartered Mutual fund Rs. 12,00,000/-, (b) Reliance Mutual fund Rs. 3,00,000/- and (c) HDFC Mutual fund Rs. 2,50,000/-. (ii) Added Rs. 92,667/- alleged by Short Term Capital gain on redemption of investment in HDFC Mutual Fund. 3.0 It is respectfully submitted that additions of Rs. 17,50,000/- and of Rs. 92,667/- are totally unjustified and in total disregarded of facts brought to AO's notice. It was clarified before the AC vide letter dated 08.12.2008 that investments of Rs. 17,50,000/- were made by appellant's husband Shri Va ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 667/- for the detailed reason given in para-7 & 8 of the impugned order which reads as under:- "7. I have considered the issue carefully. I find from the assessment order that appellant has filed complete details to show that entire investment in her name was made by her husband. The reasons for this addition given by the AO are totally irrelevant because if it is claimed that investment was made by appellant's husband and the same is duly explained from entries in husband's books of account, there was no need to make any addition in her case and this addition of Rs. 17,50,000/- is deleted. 8. So far as addition on account of capital gains is concerned, since the investment has been made by husband in the name of the appellant, in view of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... namely; Shri Vallabhbhai P. Patel indicating proof of source of income in the mutual funds furnished before the AO. It is only on doubt and suspicions the AO, without making any cross verification from the husband rejected the explanation solely on the ground that these accounts have been prepared afterthought. The counsel of the assessee further explained that the husband of the assessee is duly assessed to tax. His Permanent Account No. is ADPPP5909H. The counsel of the assessee further submitted that once all the investments are reflected in the books of accounts of the husband, there is no necessity to reflect the same in the books of accounts to his wife namely' Jayshreeben Vallabhbhai Patel (assessee). 11. Having heard both the sides ..... X X X X Extracts X X X X X X X X Extracts X X X X
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