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Facts
The assessee appealed against the CIT(A)'s decision to sustain an addition of Rs. 5,66,600/- made by the AO under Section 69, representing the difference between undisclosed investment and declared income. The assessee submitted a statement of rotation of funds based on seized annexures to explain the source of the funds.
Held
The Tribunal restored the matter to the file of the Assessing Officer for fresh examination and verification of the statement of rotation of funds provided by the assessee. The AO is to examine the source of the money received and utilized to explain the disputed amount after giving the assessee an opportunity to be heard.
Key Issues
The key legal issue is the source of funds for an undisclosed investment of Rs. 5,66,600/-, which the assessee claims is explained by a statement of rotation of funds based on seized records.
Sections Cited
Section 69
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, JODHPUR BENCH, JODHPUR
Before: DR. MITHA LAL MEENA, HON’BLE & SHRI SUDHIR PAREEK, HON’BLE
Sh. Ummaid mal Singhvi vs ACIT, Central Circle – 2 U.C. Jain, Advocate ‘Shatrunjay’ Jodhpur Hari Singh Nagar, Pali Road, Jodhpur PAN : ABPPS 7429 D APPELLANT RESPONDENT Present for Assessee Shri Rajendra Jain, Advocate (Physical) Present for Revenue Shri M.K. Jain, Ld. CIT (DR) (Virtual) Date of hearing 12/01/2026 Date of pronouncement 13/01/2026 O R D E R Per DR. MITHA LAL MEENA: This appeal in Assessment Year 2008-09 has been recalled by allowing the miscellaneous application no. 1/Jodh/2013 of the assessee vide Tribunal order dated 08.10.2014 for adjudication of ground no. 5, regarding confirmation of addition of Rs. 5,66,600/-.
Having heard both the sides and perusal of record, we find that Ld. CIT(A) has sustained the addition of Rs. 5,66,600/- made by the AO u/s 69 of MA No. 01/Jodh/2013 Asst. Year: 2008-09 2 the Act being the difference between the undisclosed investment and the amount declared in the return of income.
The AR for the assessee has submitted that to challenge the finding of the Ld. CIT(A), the appellant has furnished the statement of rotation of funds from 01.04.2007 to 31.03.2008. This statement was prepared based on the seized annexure which shows the source of money received and utilised. The Ld. AR contended that the statement of rotation of fund prepared was based on the seized records disclosed. The finding of the Ld. CIT(A) which remained uncontroverted by the CIT(A) and the Tribunal. The Ld. AR has made a prayer that the matter of source of fund of Rs. 5,66,600/- though stands explained based on the statement of rotation of funds, may be restated to the file of the AO for fresh examination and verification. The AR under takes to cooperate in the proceedings before the AO in verification of the source of the disputed amount of Rs. 5,66,600/- being claimed to be out of the rotation of funds during the financial year.
The Ld. DR on the other hand has no objection to the request of the assessee and sending the matter back to the file of the AO for the limited purpose for examination of statement of rotation of fund claimed to be prepared by the assessee based on the seized annexure.
Considering the factual matrix and in view of the principles of natural justice, we deem it appropriate to restore the matter to the file of the AO to examine the statement of rotation of funds from 01.04.2007 to 31.03.2008 as claimed by assessee to be prepared on the basis of seized annexure. The AO
MA No. 01/Jodh/2013 Asst. Year: 2008-09 3 may examine the source of the money received and utilised to explain the difference between the undisclosed investment and amount declared to the extent of Rs. 5,66,600/- after granting opportunity of being heard to the assessee.
Accordingly, the issue of source of availability of funds of Rs. 5,66,600/- for advancing loans has been restored back to the file of the AO to be examined afresh in accordance with law.
In the result, the appeal of the assessee is allowed for statistical purpose.
Order pronounced in the open court on 13th January, 2026