Case Law Details
Brief of the Case
Addition on account of unexplained money u/s 69/69A
ITAT Mumbai held in the case of Hassan Ali Khan vs. DCIT that the assessee claiming that he has no bank account or based on transfer instructions, no transfer of funds had, however, been effected, would be of little moment in-as-much as the addition is toward unexplained money or bank deposit. True, the same may be lying in his account, in whole or in part, falling in a preceding year. However, it is for the assessee to exhibit so – in explanation of the nature and source of acquisition of the money he is found to be in possession of, as statutory obliged to u/s. 69/69A. It is open for the assessee to show that the sum of money – to whatever extent, is brought forward from an earlier period, or otherwise does not represent his own capital – as where it is by way of a loan, or despite being his capital, represents a capital receipt, so that it cannot be brought to tax as his income. He, however, does not do so, and merely denies the existence of the bank account without adducing any evidence toward the same.
However, he is obliged to produce an authentic statement of account for the relevant period. The assessee could disprove the said document by a certificate from his Bank that no such transfer instruction i.e., the specified transfer instruction was in fact received or processed by it. In-as-much as the account number, which is unspecified, could be any of the account numbers which find reflection in the various documents found and seized by the Revenue in search or otherwise in its possession from reliable sources, the assessee, to decisively disprove the document, would require a statement of account for the relevant year in respect of such accounts. The AO shall, accordingly, adjudicate afresh, based on his findings in the set aside proceedings, in accordance with law.
Admission of Additional evidences
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