TaxTMI 
TaxTMI 
2012 (10) TMI 1045
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....ssed by the learned Commissioner of Income tax (Appeals) I, Bangalore, to the extent prejudicial to the appellant, is bad in law and liable to be quashed. 2.1 The learned Commissioner of Income tax (Appeals) I, Bangalore has erred in solely relying on the information contained in Annual information return (AIR) in the process of sustaining the additions to income returned to the extent of Rs. 21,00,000/-. On facts and in the circumstances of the case and law applicable, the information contained in the AIR being incorrect and not applicable to the appellant, the addition made to income returned amounting to Rs. 2 1,00,000/- is bad in law and liable to be deleted. 3.1 The learned Commissioner of Income tax (Appeals) I, Bang....
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....ion 285BA of the Income-tax Act, 1961 r.w. rule 114E of the I.T. Rules, 1962. As per the AIR obtained by the Assessing Officer, the assessee made investments to the extent of Q 25 lakhs. The details of investment made by the assessee as revealed by the AIR were as follows:- Birla Sunlife Mutual Fund 5,50,000 Franklin Templeton Mutual Fund 7,00,000 Franklin Templeton Mutual Fund 5,50,000 Birla Sunlife Mutual Fund 7,00,000 25,00,000 4. As far as the aforesaid investments are concerned, it is not in dispute that the assessee was able to explain the sources of making investments in the aforesaid funds. The AO was also satisfied with the assessee's explanation. 5. Apart from the above, the ....
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....n the AIR. The assessee also brought to the notice of the CIT(A) the decision of the ITAT Bangalore 'A' Bench dated 22.10.2010 in the case of DCIT v. G. Selvakumar - ITA No.868/Bang/2010 A.Y. 2006- 07, wherein the Tribunal had taken the view that when the AIR shows some investment and the assessee denies it, no addition can be made on account of unexplained investments without further evidence to show that the assessee made investments. The assessee also submitted that the information contained in the AIR is a guideline for the Officer based on which the Officer can initiate enquiries and that under no circumstances can AIR be considered as absolute document to conclude the assessment. 8. On the above submissions by the assessee, the ld.....
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....ions as per the Assessment order is - Date Details of Investment Amount in Rs. i. 10-03-2008 Mutual Funds 7 lakhs ii. 12-03-2008 Mutual Funds 7 lakhs iii. 12-03-2008 Shares 7 lakhs iv. 12-06-2008 Mutual Funds 5 lakhs Total 26 lakhs The above shows that Sl.No. (iv) does not pertain to this A.Y. 2007-08. Hence the addition is restricted to Rs. 21 lakhs. Appellant gets relief of Rs. 5 lakhs." 9. Aggrieved by the order of the CIT(Appeals) in sustaining the addition to the extent of Q 21 lakhs, the assessee has preferred the present appeal before the Tribunal. 10. We have heard the submissions of the ld. counsel for the assesse w....
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.... be an investment made by the assessee and only then the question of explaining the source of funds of making such investment could be examined. 13. In the present case, the assessee denies having made any such investment. The onus is on the revenue to show that the assessee made investments. The AIR which is the only basis on which the AO has proceeded to make the impugned addition is not conclusive as to the factum of the assessee having made investments. In this regard, the ld. counsel for the assessee has also filed before us the Frequently Asked Questions & Answers on AIR brought out by the Income Tax Department. In answer to question 38 as to under what circumstances the AIR will not be accepted, one of the answers given by the dep....
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..... Another investment of Rs. 7 lakhs in mutual funds stated to have been made on 12.03.2008 by cheque is again lacking of all material particulars like mutual fund in which the investment was made, the scheme of the mutual fund, etc. The discussion referred to above will be equally applicable to this addition also. 16. One more investment which requires to be considered is investment of Rs. 7 lakhs stated to have been made on 10.03.2008 by the assessee in mutual funds by cash. As already stated, the AIR lacks any information with regard to the mutual funds as well as the scheme in which the investments are made. It was brought to our notice by the ld. counsel for the assessee that as per SEBI Guidelines issued on 30.09.2002 to Mutual Fund....