Addition u/s 69 towards unexplained investment unsustainable as source for purchase duly established

ITO Vs Kavitha Siddareddy (ITAT Chennai)

ITAT Chennai held that addition towards unexplained investment under section 69 of the Income Tax Act unsustainable as source for purchase of property duly established with necessary evidences.

Facts- During the course of assessment proceedings, it was noticed that the assessee has purchased property for a consideration of Rs.3.40 Crs., and thus, the AO called upon the assessee to explain source for purchase of property. In response, the assessee submitted that she had received unsecured loan of Rs.1.40 Crs. from her husband, Mr.S.V.Ranga Reddy. She further stated that she had drawn a sum of Rs.1.90 Crs. from the partnership firm i.e. M/s.SVR Construction Co., where she was one of the partners, and she had also drawn Rs.60 lakhs from M/s.Vinayak Infra Projects.

Rejecting the arguments of the assessee and made additions towards source for purchase of property as unexplained investment u/s.69 of the Act.

CIT(A) deleted the said additions. Being aggrieved, revenue has preferred the present appeal.

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