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Issues involved: Determination of the nature of a credit balance in the accounts of the assessee, authenticity of the transaction involving Rs. 80 lakhs, justification of adding the amount to the income of the assessee.
Summary: The High Court of Delhi addressed a case where the assessee contested an order by the Income-tax Appellate Tribunal regarding a credit balance of Rs. 80 lakhs in the accounts, purportedly received as an advance for share purchase from Ms. Devina Mehra. The Assessing Officer raised concerns about the genuineness of the transaction due to lack of confirmation from Ms. Devina Mehra. Despite explanations from the assessee and M/s. First Global Finance Pvt. Ltd., discrepancies arose regarding the source of the funds. Upon appeal, the Commissioner of Income-tax (Appeals) remanded the matter to determine the actual source of the amount. Subsequent investigations revealed conflicting versions, including the involvement of a third party, M/s. Growell Capital Services Pvt. Ltd., in issuing demand drafts. The authorities found the explanations provided by the assessee to be inconsistent and unsubstantiated, leading to the addition of Rs. 80 lakhs to the assessee's income. The High Court upheld the decisions of the lower authorities, emphasizing the presence of serious doubts in the explanations provided by the assessee. With no substantial question of law identified, the appeal was dismissed, affirming the findings of the authorities regarding the unexplained nature of the transaction and the addition of the amount to the assessee's income.
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