Hello Textiles Vs ITO (ITAT Pune)
Assessee, a partnership firm, challenged the CIT(A)/NFAC order confirming an addition of ₹16,90,000 u/s 69 as unexplained investment based on alleged transfer to Silver Shine Exports, Ahmedabad, discovered during investigation of entry operators.
AO treated the sum as unexplained after obtaining HSBC Bank details showing a remittance by “Hello Textiles” to Silver Shine Exports. Assessee denied any such transaction, explaining that its business had not commenced during A.Y. 2010–11 & that the address on record in the bank document (Surat, Gujarat) did not match its registered address in Navapur, Maharashtra.
It was further pointed out that the HSBC records showed the transaction date as 23.03.2009, falling in A.Y. 2009–10, making the addition in A.Y. 2010–11 legally untenable. CIT(A) ignored this specific ground while upholding the addition.
ITAT, on examining HSBC’s transaction details, confirmed that the alleged remittance indeed occurred on 23.03.2009. Hence, the addition made in A.Y. 2010–11 was factually & legally misplaced.
Addition of ₹16.90 lakh deleted, as the transaction pertained to A.Y. 2009–10 & not to A.Y. 2010–11.
Order of CIT(A) set aside; appeal allowed.
Addition cannot be made in a wrong assessment year when the transaction date clearly falls in an earlier year; AO must verify assessment year correctly before invoking Section 69.
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