Addition u/s 69A sustained as nature and source of acquisition of property not offered satisfactorily

DCIT Vs Shivram Consultants India Pvt. Ltd (ITAT Delhi)

ITAT Delhi held that where the property is not recorded in the books of account and explanation about the nature and source of acquisition of property is not offered satisfactorily, then value of such property would be deemed to be income under section 69A of the Income Tax Act.

Facts- Based on the information from the investigation wing, the case of the assessee was reopened u/s 148. In response to the aforesaid notice, the assessee electronically filed its return of income declaring total income of Rs. 10,62,27,410/-. The case was taken-up for scrutiny and consequently, assessment was framed u/s. 143(3) r.w.s. 147 of the I.T. Act, 1961 vide order dated 22.12.2018 and the total income was determined by the A.O. at Rs.14,62,27,410/-.

CIT(A) granted substantial relief to the assessee. Being aggrieved by the order of the CIT(A), the Revenue is now in appeal before the Tribunal.

Conclusion- A bare reading of Section 69A makes it clear that where the property described under section 69A of the I.T. Act, 1961 is not recorded in the books of account, if any, maintained by the assessee from any source of income and the assessee does not offer any explanation about the nature and source of acquisition of such property and the explanation offered is not satisfactory in the opinion of A.O, then the value of such property would be deemed to be the income of the assessee for such financial year.

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