9911796707
TMI Blog2021 (3) TMI 125X X X X Extracts X X X X X X X X Extracts X X X X ..... -2006, i.e., assessment year 2006-2007. Therefore, investments made in assessment year 2006-2007 cannot be brought tax u/s 69 in the relevant assessment year, namely, A.Y. 2008-2009. For this reason alone, the A.O. was not justified in law in making an addition by invoking the provisions of section 69 of the I.T.Act. The advance paid by the assessee to Shri Narayana Reddy during the assessment year 2006-2007 is stated to be out of sale proceeds of 1 Acre 30 guntas of land belonging to the assessee and her son. Since it is clear that the amount has been advanced for purchase of land in assessment year 2006- 2007, addition u/s 69 of the I.T.Act amounting to 17,10,000 cannot be made for the relevant assessment year, viz., 2008- 2009. It is ord ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... iven any details with regard to the cash deposits of 50,000 on 07.04.2007, as confirm this addition. X X X X Extracts X X X X X X X X Extracts X X X X ..... sit in the Karnataka Bank Ltd., She does not have any dependents and she is looked after by Ashram inmates in Swamy Vivekananda Ashram, Hoody Village, Bangalore." By the above words the assessee's representative appear to impress on the assessing officer to show mercy on the assessee by his above explanation, without explaining the following basic questions. 1. How the amount of ₹ 17,10,000/- was earned by the assessee? 2. When this amount was earned by the assessee? 3. How the amount has come to the credit of the assessee? 4. What is the agreement between the assessee and Shri H.T.Narayana Reddy to this extent? 5. What is the name, address, PAN No., Income tax details of Shri H.T.Narayana Reddy? 6. How the amount ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... copy of sale deed dated 25.08.2004, return of income and statement of computation of income for assessment years 2005-2006, 2006- 2007 and 2007-2008, Affidavit filed by Shri H.T.Narayana Reddy, etc. The learned AR reiterated the submissions made before the Income Tax Authorities. 4.3 The learned Standing Counsel, on the other hand, strongly supported the assessment order and the CIT(A)'s findings. 4.4 I have heard rival submissions and perused the material on record. From the plain reading of section 69 of the I.T.Act, it is clear that investments which are made in the financial year immediately preceding the assessment year can only be subjected to addition under the said section. In other words, the investments made in any other assess ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nt to swear to this affidavit. 02. I state that I had received a sum of ₹ 17,10,000/- in cash during the financial year 2005-2006 from Smt.Anasuya Basi Reddy for purchasing a piece of land in her name. 03. I further state that due to lack of interest on part of Smt.Anasuya Basi Reddy to purchase land and subsequent request from them to return the aforesaid land advance, I have repaid part of the aforesaid advance amounting to ₹ 4,00,000/- in cash during the Financial year 2007-2008, 04. I further undertake to state that the remaining balance of ₹ 13,10,000/- has been repaid by me during the Financial year 2010-2011. 05. I further undertake to state that the aforesaid money which was received by me and subsequen ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ee had received back a sum of ₹ 4 lakh being part of advance amount paid to Shri Narayana Reddy. This amount of ₹ 4 lakh received from Shri Narayana Reddy was invested in mutual funds. With regard to the bank deposit of ₹ 1 lakh, the Assessing Officer has erroneously came to the conclusion that the assessee has made bank deposit of ₹ 1 lakh. The A.O. himself in paragraph 5 of the impugned assessment order had found that on verification of assessee's bank account, there was no such bank deposit on 12.11.2007 of ₹ 1 lakh. Therefore, only the investment made during relevant assessment year is with reference to mutual funds amounting to ₹ 4 lakh. The investment in mutual funds was explained by the amount of & ..... X X X X Extracts X X X X X X X X Extracts X X X X
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