2010 (4) TMI 1156 - AT - Income Tax

Summary

Issues involved:
1. Addition of undisclosed income in the savings account of the minor son.
2. Addition of investment in land from undisclosed sources.

Issue 1 - Savings Account:
The appellant challenged the addition of &8377; 36,500 as undisclosed income in the savings account of the minor son. The appellant explained that the cash deposit was from accumulated gifts received for the son's birthday. However, the authorities did not accept this explanation, citing lack of documentary evidence. The CIT(A) upheld the addition, stating that the burden of proof was not discharged by the appellant. The Tribunal agreed with the CIT(A), noting the absence of evidence supporting the claim of gifts. The Tribunal confirmed the addition, as the appellant failed to prove the source of the deposit.

Issue 2 - Investment in Land:
The appellant contested the addition of &8377; 1,15,000 as investment in land from undisclosed sources. The AO found unregistered purchase deeds at the residence during a search, leading to the conclusion that the investment was made from unaccounted income. The CIT(A) upheld the addition, emphasizing the lack of explanation for the source of investment. The Tribunal noted that the wife of the appellant had declared tuition income, but it was insufficient to explain the investment. The Tribunal confirmed the addition, as the appellant failed to provide a satisfactory explanation for the source of investment. The substantive assessment in the appellant's name was deemed justified, considering the surrounding circumstances and lack of evidence supporting the claimed source of funds.

Conclusion:
The Tribunal dismissed the appeal, upholding the additions of undisclosed income in the savings account and investment in land from undisclosed sources. The appellant's contentions were not supported by sufficient evidence, leading to the confirmation of the additions by the authorities.