Unexplained investment claim failed where LIC premium payments were backed by retirement benefits and documented cash sources.

LIC premium payments were examined as a possible unexplained investment, but the documentary record supported the assessee's explanation that the funds came from retirement benefits and later cash received from I-Core Services Limited after dishonour of an earlier cheque. On those facts, the investment was not treated as unexplained, and the addition was deleted in favour of the assessee.

---

---

Issues: Whether the addition made as unexplained investment on account of LIC premium payments was sustainable.

Analysis: The assessee showed that the investment was made out of available retirement benefits and subsequent cash received from I-Core Services Limited upon dishonour of the earlier cheque. The documentary material on record supported the source of funds for the LIC payments, and the facts did not justify treating the investment as unexplained.

Conclusion: The addition could not be sustained and was directed to be deleted in favour of the assessee.

---