Unexplained investment addition fails when share transactions are fully documented and revenue lacks affirmative contrary evidence.

Additions treating share purchases as unexplained investment under section 69 and related short-term capital gains as bogus were found unsustainable where the assessee produced broker notes, demat records, bank details and transaction trails. The revenue failed to produce affirmative material showing any unrecorded investment or to contradict the documented transactions through enquiry with the broker or its books. Once the assessee discharged the primary evidentiary burden, the addition could not rest on suspicion or presumption. The disputed additions were deleted and the assessee's claim was accepted.

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Issues: Whether the addition made towards purchase of shares as unexplained investment under section 69 and the addition of short-term capital gain as bogus could be sustained on the basis of the material on record.

Analysis: The assessee furnished broker notes, demat account particulars, bank account details and transaction records to show that the share purchases and sales were duly documented. The revenue did not bring material to establish that any actual investment was made outside the books or that the transaction with the broker was bogus. Enquiries made with stock exchanges, where the broker was not shown to be a member, did not dislodge the assessee's evidence, and no enquiry was made from the broker or its books to contradict the transaction trail. An addition under section 69 cannot rest on mere suspicion or presumption once the assessee has discharged the primary onus by producing supporting material.

Conclusion: The additions towards unexplained investment and the corresponding short-term capital gain were not sustainable and were deleted. The appeal was allowed in favour of the assessee.

Ratio Decidendi: A deemed unexplained investment cannot be sustained without affirmative material showing actual unrecorded investment, particularly where the assessee has produced credible documentary evidence of the transaction.

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