Ummaid mal Singhvi Vs ACIT (ITAT Jodhpur)
ITAT Jodhpur: Addition u/s 69 Restored to AO to Verify ‘Rotation of Funds’ Explanation
The Income Tax Appellate Tribunal allowed the assessee’s appeal for AY 2008-09 for statistical purposes, restoring a limited issue to the Assessing Officer for fresh verification.
The Tribunal was seized of a recalled appeal to adjudicate Ground No. 5, relating to an addition of ₹5,66,600 sustained by the CIT(A) under section 69 as unexplained investment. The assessee contended that the source of the amount stood explained through a statement of rotation of funds prepared from seized annexures, evidencing receipts and utilisation during FY 2007–08.
Both sides agreed that the explanation warranted factual verification. In the interest of natural justice, the ITAT set aside the finding on this limited aspect and remanded the matter to the AO to examine the rotation-of-funds statement vis-à-vis the seized material, after granting due opportunity to the assessee.
Accordingly, the appeal was allowed for statistical purposes, with directions for a de novo, limited verification of the source of ₹5,66,600.
FULL TEXT OF THE ORDER OF ITAT JODHPUR
This appeal in ITA No. 158/Jodh/2011 in respect of Assessment Year 2008-09 has been recalled by allowing the miscellaneous application no. 1/Jodh/2013 of the assessee vide Tribunal order dated 08.10.2014 for adjudication of ground no. 5, regarding confirmation of addition of Rs. 5,66,600/-.
