S. 69 ITO have discretion in treating source of investment as income

A discretion has been conferred on the ITO U/s 69 of the Act to treat the source of investment as income of the assessee if the explanation offered by the assessee is not found satisfactory. However, the said discretion should be exercised keeping in view the facts and circumstances of a particular case. when it is claimed that the assessee could not possibly have any source of income, the addition on his hand is not justified within the parameters of the Income Tax Act. RELEVANT EXTRACT OF ITAT JUDGMENT 6. We have perused the case records, analysed the facts and circumstances of the case and ...