TaxTMI 
TaxTMI 
TaxTMI 
2018 (3) TMI 579
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....ven in the affidavit are accepted and we hold that there was a reasonable and sufficient cause for the delay in filing the appeal. The delay in filing this appeal is accordingly condoned. 3. The Assessee is an individual. For A.Y.2008-09 the assessee filed return of income declaring total income of Rs. 2,12,670/-. In the course of assessment proceedings u/s 143(3) of the Income Tax Act, 1961 the AO confronted the assessee with AIR information received by him which was to the effect that the assessee has made the following investments in various mutual fund schemes : 4. The AO called upon the assessee to explain the source of funds out of which the aforesaid investments were made by the assessee. According to the AO there was a failure on ....
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....can be made during the assessment year in question. 2 6.08.2007 27,00,000/- JM Mutual Fund This investment was made from AXIX Bank (Ale 53) out of the maturity of investment in AIG Mutual Fund (Paper book page 1) put in IX Bank (A/c 53) and small remaining bank balance on maturity of other investments before that date. This investment was redeemed on 6. 12. 2007 Rs. 31,14, 965/-vide age 15- J 7 and put in AXIX Bank A/c 53) Thus this investment came from redemption of earlier investment, no addition can be made. 3. 8.08.2007 2,50,000/- Reliance Mutual Fund The investment was made from Standard Chartered Bank (A/c 476) vide age 4 was made out of the maturity of SBI Mutual Fund of Rs. 2,35. 350/- which was earlier made on 17.....
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....s. 3,25,484/- in SBI Mutual Fund on 11.7.2007. Copy of bank account and certificate of SBI attached. The investment with SBI Mutual Fund was made on 17.1.2007 vide Paper book page 9. The investment was redeemed on 28.9.2007 (Rs. 3,38,499/- A/c 7-0) vide Paper book page 10 and put in Std Ch Bank. Since the investment came our of the redemption of earlier years investments, no addition can be made during the assessment year in question. 7 8.08.2007 25,00,000/- Reliance Mutual Fund Source explained vide SL 5, the investment was matured on 21.9.2007 vide Paper book page 11 and put in Axix Bank bank (A/c 53) Rs. 25, 30, 991/-) Hence no addition can be made. 8. 14.10.2007 30,00,000/- Kotak Mahindra Mutual Fund The investment was....
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....52,83,292/- + 48,39,261/- Total 1,01,22,553/- and received back Was 39,20,119/- + 39.60,000/- + 29, 0,000/- i.e. 1,08.50.120/- This amount was thus invested out of the amount received from S K P Securities Ltd. as stated above and redeemed on 16.1.2008 vide page 14 and put in Axix bank. 13 11.01.2008 33,00,000/- Reliance Mutual Fund Investment made from Axix Bank (53) out of receipt as stated in sl 12. The redemption of this mutual fund was received on 16.1.2008 vide page 14 and put in axix bank Ale 53 14. 11.012008 29,50,000/- Reliance Mutual Fund Investment explained vide Sl 11 made out of Rs. 29.70.000/- received form SKP Securities Ltd against the money given to them on 18.12.2007 (Rs. 5283292/- from A/c no. 53. This a....
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....erefore no addition could be made u/s 69 of the Act. The CIT(A) accordingly deleted the addition made by the AO. 9. The CIT(A) further noticed that the assessee had earned short term capital gain of Rs. 14,97,103/- on redemption of units of mutual funds during the previous year which were explained as source for making various investments in mutual funds during the relevant previous year. The details in this regard were as follows :- 10. The CIT(A) found that the assessee had not disclosed the aforesaid short term capital gain in his return of income. The CIT(A) accordingly directed the AO to bring to tax the short term capital gain of Rs. 14,97,103/-. 11. Aggrieved by the relief granted by the CIT(A) the revenue is in appeal before the ....
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.... assessment year the assessee has made investments which are not recorded in the books 0/ account, if any, maintained by him for any source 0/ income, AND the assessee offers no explanation about the nature and source of the investments or the explanation offered by him is not, in the opinion of the Assessing Officer, satisfactory, the value of the investments may be deemed to be the income of the assessee of such financial year ." - 15. A reading of the provisions contained in sec. 69, shows that if any investment is found to have been made by the assessee during the financial year which is not recorded in the books of accounts , it can be treated as income of the assessee for such financial year. However, if the assessee is in a positio....