Section 69 of the Income-tax Act, 1961 - Unexplained investments (Estimated addition)

IT : In view of failure of assessee to explain source of investment for earning certain undisclosed income, reasonable addition suggested by revenue on account of unexplained investment on estimate basis was to be confirmed

■■■

[2014] 52 taxmann.com 112 (Andhra Pradesh and Telangana)

HIGH COURT OF TELANGANA AND ANDHRA PRADESH

Commissioner of Income-tax

v.

Jaihind Cycle Co.*

L. NARASIMHA REDDY AND CHALLA KODANDA RAM, JJ.

IT TRIBUNAL APPEAL NO. 58 OF 2001†

JULY  16, 2014

Section 69 of the Income-tax Act, 1961 - Unexplained investments (Estimated addition) - Block assessment period 1993-94 to 1997-98 - During search proceedings certain undisclosed income was found - Assessing authority computed net addition at Rs. 1.34 crore with tax liability of Rs. 80.22 lakh while Tribunal reduced tax laibility to Rs. 32 lakh - Whether in view of assessee's failure to explain source of investment for earning said income, an addition of Rs. 50 lakh as unexplained investment as suggested by revenue was to be upheld - Held, yes [Para 11] [Partly in favour of assessee]