Sustenance of addition made by the A.O. under section 69A of the Income Tax Act, 1961

IN THE INCOME TAX APPELLATE TRIBUNAL, CHANDIGARH BENCH “A”, CHANDIGARH
(VIRTUAL COURT)

BEFORE: SHRI N.K. SAINI, VP & SHRI R.L. NEGI, JM

ITA NO. 962/Chd/2019
Assessment Year : 2014-15

Smt. Jagmohan Kaur Bajwa
Legal heir Lt. Jaskiran Singh Bajwa
H.No. 3077, Sector 19-D, Chandigarh

Vs.

The ITO
Ward 3(1), Chandigarh
PAN NO: ACRPB9826E
Appellant Respondent

Assessee by : Shri Sudhir Sehgal, Advocate
Shri Aman Parti, Advocate
Revenue by : Shri Manveet Singh Sehgal, Addl. CIT

Date of Hearing : 10/05/2021
Date of Pronouncement : 23/07/2021

Order

PER N.K. SAINI, VICE PRESIDENT

This is an appeal by the Legal heir of the deceased assessee against the order dt. 26/04/2019 of Ld. CIT(A)-1, Chandigarh.

2. Following grounds have been raised in this appeal:

1. That the Commissioner of Income Tax(Appeals) erred on facts and in law in upholding the addition of Rs. 99,84,046/- u/s 69A of the Income Tax Act, 1961 in respect of the additions made in appellant's capital account which already stood disclosed in the books of accounts.

2. That the Commissioner of Income Tax(Appeals) erred on facts and in law in treating the amounts received by the appellant from his maternal cousin (through his son's account) for investing the same in purchase of an immovable property on his behalf as unsecured loan and thereby upholding the addition made by the Assessing Officer amounting to Rs. 99,84,046/- as unexplained investment.

3. The assessee craves leave to add/alter any of the ground of appeal on or before the date of hearing of appeal.

From the aforesaid grounds it is gathered that the only grievance of the assessee relates to the sustenance of addition of Rs. 99,84,046/- made by the A.O. under section 69A of the Income Tax Act, 1961 (hereinafter referred to as ‘Act’). 

3. Facts of the case in brief are that the assessee electronically filed the return of income on 29/11/2014 declaring an income of Rs. 8,87,340/- which was processed under section 143(1) of the Act, later on the case was selected for scrutiny.

3.1 During the course of assessment proceedings the A.O. noticed that there was a substantial increase in the capital account of the assessee amounting to Rs. 1,19,44,047/-. The A.O. asked the assessee to furnish the source of increase in the capital account with supporting evidence. The assessee submitted that he had introduced capital from the funds received from Shri Hardev Singh Sahi in Indian rupees and Canadian Dollar and also furnished the copy of the ledger account. The assessee also furnished “advice of inward remittance” from Canada in Indian rupees issued from Axis Bank, Sector-16, Chandigarh and the relevant page of his HDFC Bank statement wherein Rs. 19,00,000/- was reflected as received from Shri Hardev Singh. According to the A.O. 

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