Income from undisclosed sources–Addition under section 69–Unexplained investment.

 

Leela Devi Bumb v. ITO

Decision:    Against the assessee

Income from undisclosed sources–Addition under section 69–Unexplained investment

Facts:

Assessee, an individual, entered into commodity exchange transactions, but she did not disclose these transactions in her return of income. She had also deposited cash in her bank account. AO made addition under section 69 and the same was confirmed by CIT(A). She filed an appeal against the order on the ground that she was a sub-broker and the cash deposited in the bank belong to her clients.

Held:

Assessee had not filed any reliable evidence or documents, which could establish that the assessee was working as sub-broker on behalf of the certain clients from whom she claimed to have received the cash to settle the margins. She had not able to file any documentary evidence with regard to the nature and source of the cash deposits in her bank account. Hence, the action of treating the entire cash deposits as unexplained investment of the assessee was held to be fully justified and in accordance with the provisions of law.