2013 (11) TMI 1770 - AT - Income Tax

Summary

Issues involved:
1. Addition of unexplained investment of Rs. 7,00,000 in construction/renovation of the house.
2. Addition of cash of Rs. 1,95,000 found from the bank locker in the joint name of the appellant and his wife.

Issue 1: Addition of unexplained investment of Rs. 7,00,000 in construction/renovation of the house:
- The AO observed unexplained expenses for construction/renovation of the house during a search, which the assessee admitted to being Rs. 7,00,000 sourced from unaccounted income offered for taxation by his brother.
- The assessee requested telescoping this unaccounted income against the expenses, but the AO rejected it due to lack of evidence.
- The Ld. CIT(A) also did not accept the submission without corroborative evidence.
- The ITAT upheld the decision, stating that the appellant failed to prove the source of the unaccounted expenditure and the utilization of the undisclosed income, thus confirming the addition of Rs. 7,00,000.

Issue 2: Addition of cash of Rs. 1,95,000 found from the bank locker in the joint name of the appellant and his wife:
- Cash of Rs. 1,95,000 was found in the locker of the assessee, with the explanation that it belonged to his wife received upon her mother's death.
- The AO added this amount to the total income of the assessee, stating that the source of the cash was not proven.
- The Ld. CIT(A) did not accept the explanation provided by the assessee, as no evidence was presented to support the claim.
- The ITAT upheld the decision, noting the absence of evidence to prove that the cash was received by the wife at the time of her mother's death, thus confirming the addition of Rs. 1,95,000.