Tribunal upholds deletion of ? 7.02 crores addition under Income-tax Act, 1961 for 2012-13 assessment year

The Tribunal upheld the deletion of an addition of ? 7.02 crores made under section 69B of the Income-tax Act, 1961 for the assessment year 2012-13. The Revenue's appeal against the deletion was dismissed as the Tribunal found that the assessee adequately explained the source of payments totaling ? 22 crores used to purchase a company, with ? 19 crores through banking channels and the remaining ? 3 crores from own savings, supported by detailed payment records. The Tribunal concluded that there was no need to interfere with the CIT(A)'s decision, affirming the deletion of the addition.

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Issues:
Deletion of addition of Rs. 7.02 crores made under section 69B of the Income-tax Act, 1961.

Analysis:
The case involved an appeal by the Revenue against the deletion of an addition of Rs. 7.02 crores made by the Assessing Officer under section 69B of the Income-tax Act, 1961. The assessment year in question was 2012-13. The dispute arose from a search conducted under section 132 of the Act where it was discovered that the assessee had purchased a company for Rs. 22 crores. Initially, the assessee explained that the purchase was made through a different company and accounted for in their books. However, during the assessment proceedings, the Assessing Officer deemed Rs. 7.02 crores as unaccounted investment, leading to the addition. The CIT(A) later deleted this addition, stating that the payment was adequately explained by the assessee through banking channels and own savings.

Upon appeal, the Revenue argued that the remaining amount of Rs. 3 crores paid in cash was unaccounted, justifying the addition. On the contrary, the assessee maintained that all payments were explained and supported by documentary evidence. The Revenue contended that the cash payment was admitted as additional income in a statement recorded under section 132(4) of the Act. The assessee, however, presented a paper book with detailed payment records and cash book extracts to support their claim that the source of the entire payment was legitimate.

After considering the submissions and evidence, the Tribunal noted that the assessee had indeed paid Rs. 19 crores through banking channels, which was not disputed. The remaining Rs. 3 crores was paid from the assessee's own savings, as supported by the date-wise payment details provided. The Tribunal found no reason to interfere with the CIT(A)'s order, as the source of the payments was adequately explained. Consequently, the appeal of the Revenue was dismissed, upholding the deletion of the addition of Rs. 7.02 crores made by the Assessing Officer under section 69B of the Income-tax Act, 1961 for the assessment year 2012-13.

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