Section 68 addition fails where remand report shows the receipt was sale proceeds of investment, not unexplained credit.

An addition under section 68 could not be sustained where the remand report and factual findings showed that the receipt was sale consideration from investment, reflected in the balance-sheet and verified by the Assessing Officer, rather than an unsecured loan or unexplained credit. The CIT(A) deleted the addition on that basis and the Tribunal affirmed after reappreciating the material. On those facts, no substantial question of law arose and the revenue's challenge failed.

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Issues: Whether the addition made under section 68 of the Income-tax Act, 1961 was rightly deleted on the basis of the remand report and the factual finding that the impugned receipt represented sale proceeds of investment and not unsecured loan.

Analysis: The remand report accepted that the amount received was attributable to sale of shares reflected in the balance-sheet and verified by the Assessing Officer, and not to any unsecured loan. The Commissioner of Income Tax (Appeals) relied on these facts to delete the addition, and the Tribunal concurred after reappreciating the material, including the remand report. On these facts, no substantial question of law arose.

Conclusion: The deletion of the addition under section 68 was upheld and the revenue's challenge failed.

Ratio Decidendi: Where the remand report and factual findings establish that the receipt is sale consideration of investment and not unexplained credit, an addition under section 68 cannot be sustained and no substantial question of law arises.

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