Case Law Details
Nischal Sethi Vs ITO (ITAT Delhi)
ITAT Delhi held that addition of unexplained investment under section 69 of the Income Tax Act merely on the basis of loose sheet alone without any other corroborative evidence is unsustainable in law.
Facts-
The assessment was re-opened based on the information received from Investigation Wing that the assessee has invested 40,00,000/- towards purchase of commercial property in Nehru Vikas Minar Projects out of which Rs.20,00,000/- was paid in cash. In the course of re-assessment proceedings the Assessing Officer required the assessee to explain the investment made towards purchase of property with documentary evidences. The assessee submitted that during the year assessee has not purchased any commercial property in Nehru Vikas Minar Projects neither in his own name nor in the name of any family members. It was also submitted that assessee has only one savings bank account with Punjab National Bank, Kaushambi branch and an affidavit was also furnished.
However, the Assessing Officer based on the loose papers which were seized in the corporate office of AEZ group wherein the assessee’s name was reflected as one of the investors concluded that the assessee purchased commercial property in Nehru Vikas Minar Projects by paying Rs.20,00,000/- in cash as the assessee failed to adduce any evidence to rebut the findings of the Investigating Wing. He treated Rs.20,00,000/- as unexplained investment made by the assessee under section 69 of the Act.
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