Undisclosed income from share sales after insufficient proof of source; limited addition imposed at 30% with non-precedential restriction

Undisclosed deposits alleged to be proceeds from share sales were examined with focus on the assessee's burden to prove source; although documentary evidence was furnished, the explanation was held insufficient to discharge the onus, leading to a quantification of addition. The tribunal curtailed the addition to thirty percent of the impugned sums as a remedial measure while imposing a non-precedential rider, restricting reliance on this adjustment in other assessment years.

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Issues: Whether the additions of Rs.17,88,666 and Rs.16,53,772 treated as unexplained income should be upheld or modified where the assessee claims the amounts arose from sale of shares but has not fully discharged the onus of proving the source.

Analysis: The Tribunal examined the documentary material placed before the authorities and the explanations furnished by the assessee. The Tribunal found that although evidence was produced to show the amounts related to share sales, the explanation and supporting material did not sufficiently discharge the assessee's onus of proving the source of the impugned deposits during assessment and appellate proceedings. In view of the partial evidence and the need for equitable treatment, the Tribunal exercised its discretion to moderate the additions rather than sustain them in full.

Conclusion: The additions are restricted to 30% of the impugned sums and the appeals are partly allowed in favour of the assessee.

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