Retrospective cancellation of charitable registration under section 12AB(4) was unsustainable; related-party benefit allegations did not prove nongenu...
Merger control notice and disclosure rules: Supreme Court limits penalties, rejects reopening of approved combination, and sets aside adverse findings...
The ITAT held that additions under section 69 for unexplained investments were not justified as the alleged investments were recorded in the books and the assessee provided satisfactory explanations supported by documentary evidence. The AO's reliance solely on account entries, prepared immediately after the financial year without corroborative proof, was insufficient. The tribunal emphasized that for invoking section 69, the investments must be unrecorded in the books and the source of funds unexplained. Here, the sale consideration was not paid, and there was no physical transfer of property, rendering the purported sale invalid and the deed ineffective. Consequently, no unexplained investment arose, and the addition under section 69 was unwarranted. The appeal was allowed, setting aside the addition.
The ITAT held that additions under section 69 for unexplained investments were not justified as the alleged investments were recorded in the books and the assessee provided satisfactory explanations supported by documentary evidence. The AO's reliance solely on account entries, prepared immediately after the financial year without corroborative proof, was insufficient. The tribunal emphasized that for invoking section 69, the investments must be unrecorded in the books and the source of funds unexplained. Here, the sale consideration was not paid, and there was no physical transfer of property, rendering the purported sale invalid and the deed ineffective. Consequently, no unexplained investment arose, and the addition under section 69 was unwarranted. The appeal was allowed, setting aside the addition.
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