Addition sustainable if assessee fails to rebut unexplained investment

CIT Vs Sanjay Chhabra (Chandigarh High Court)- The sole point for consideration in this appeal is that once the Revenue had come to the conclusion that the assessee had made sales of apples amounting to Rs. 5,75,654/- to one Jagdish Chawla, whether it was the entire amount, or the 5% profit thereof, being commission on such sale, that was to be added to the income of the assessee.

According to the Revenue, the judgement of the Gujarat High Court reported in President Industries’s case (supra), was not applicable and the entire sale amount was asses-sable in the hands of the assessee. On the other hand, learned counsel for the assessee on the strength of the aforesaid decision argued that only 5% profit on the sale amount as commission was exigible to tax.  10. We find force in the contention of the learned counsel for the Revenue.