Case Law Details
DCIT Vs Sukhbir Shokeen (ITAT Delhi)
ITAT Delhi held that addition u/s 69 of the Income Tax Act towards unexplained investment untenable as source of investment made by the appellant stands sufficiently explained.
Facts- AO noted that during the year under consideration, the appellant has been engaged in plotting and sale of this land to different parties. During the A.Y. 2016-17, AO noted that there were substantial credits including the cash deposits in his different bank accounts and that the assessee has not been able to explain how the income figure for different assessment years has been worked out.
The income declared by the appellant in the A.Y. 2016-17 was not accepted and AO concluded that the assessee being a broker in real estate business and having no other substantial source of income than the real estate business, the credits in the bank accounts represent the gross receipts of the assessee. Thus, the income of the appellant has been computed by AO @8% of the total receipts/credits of Rs.11,08,41,059/-, u/s 44AD of the Act at Rs.88,67,284/-.
Notably, the explanation in this regard filed by the appellant was not acceptable and added the amount of Rs. 4,59,50,000/- on account of unexplained investment u/s 69 of the Act.
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