INCOME TAX ACT, 1961

Section 69

Income from undisclosed sources - Addition under section 69 - Investments alleged as unexplained -

Search was conducted at assessee's premises. The seized documents reflected details of shares held by assessee in M/s. Orbit Securities Private Ltd. for Rs. 21 lakhs as on 22-1-2004. The same was added under section 69 as unexplained investment.Held: Upon perusal of details of seized documents containing details of investment in shares, it could be gathered that assessee held various scripts for aggregate amount of Rs. 21 lakhs. Upon perusal of original return of income, computation of income and and financial statement it was clear that assessee had declared short-term capital gain on sale of shares for Rs. 3.88 lakhs in the return of income. All these shares were sold by assessee during concerned year and the resultant gain/loss were taken into account while computing short-term capital gains and the same was already offered to tax. This being so, investments as mentioned in the seized documents could not be termed as unexplained investment and therefore, addition was not sustainable.