S. 68 No Addition if Assessee discharges initial onus casted on him

Assessee had declared an income by filing its return. The said return was selected for scrutiny through CASS on the basis of AIR. Assessment u/s 144 was made, resulting in an addition of Rs. 28,50,000/- as the assessee was found to have failed to explain the source of investment. In appeal before the first appellate authority the assessee explained that investments had been sourced partly out of the redemption amount of Rs. 19,09,029/- of Birla Sun Life Mutual Fund and partly out of loans of Rs. 17,00,000/- from close friends and relations. The CIT(A) forwarded these submissions and facts to t...