Sundarapandian Vs Assessment Unit (Madras High Court)
Madras High Court held that once the genuinity of the transaction is proved by the petitioner before this Court, there is no necessity for remanding the matter back to the respondents. Accordingly, addition towards unexplained investment set aside.
Facts- In the present case, the dispute is with regard to the deposit of a sum of Rs.64,58,320/- which was made in the bank account of the petitioner. In this regard, the respondent had issued show cause notice and passed the impugned orders by treating the said amount as “unexplained investment”.
However, according to the petitioner, the said amount was obtained out of sale proceeds of jewelery and other ritual items and from the donation received by the petitioner. Further he would submit that the said amount will be utilized for construction of temple. In this regard a detailed reply was also filed by the petitioner, along with all the documentary evidences, before the respondent. However, the same was not considered by the respondents while passing the impugned orders.
Conclusion- Upon perusal of the documentary evidences produced by the petitioner, it is clear that the said amount was obtained out of sale proceeds of the jewelery and other ritual items and also from the donations received by the petitioner, which has to be used for construction of temple. In this regard, a detailed reply was filed by the petitioner along with all the documentary evidences. However, without considering the same, the respondents had passed the impugned orders in non-application of mind. In such case, the said impugned orders are liable to be set aside.
