Avinashi Vadivel Nageswaran vs. ITO

Parties Involved

Facts Summary

The assessee, Avinash Vadivel Nageswaran, runs a jewellery shop named M/s ASM Jewellery. During a survey on 05-03-2015, the assessee admitted to expanding Rs.3.50 Crores for the construction of a building at Anthiyur. The assessee sourced Rs.2.75 Crores from banks and Rs.1 Crores from his accounts, his wife's, and his two sons' accounts. However, in a subsequent statement, the assessee claimed that Rs.2.16 Crores was a loan from the bank, Rs.40 Lacs was withdrawn from his bank accounts, and Rs.27 Lacs was earned from his business and agriculture income. The assessee offered the balance Rs.67 Lacs as undisclosed income from the business. However, this disclosure was not admitted in the return of income. The assessee submitted a breakdown of the amount spent by himself, his wife, and his two sons during the assessment proceedings. The assessee also furnished cash flow statements for the assessment years 2014-15 and 2015-16. However, the Assessing Officer alleged that all the funds were routed through the accounts of the assessee. The assessee argued that the land on which the building was constructed was owned by the assessee, his wife, and his two sons. The construction was undertaken by four persons. The wife and two sons borrowed Rs.41 Lacs from the bank, whereas the assessee along with his wife and elder son borrowed a loan of Rs.120 Lacs from the bank. The other two sons borrowed a loan of Rs.60 Lacs. The assessee submitted that the property was owned by four persons and f…

Legal Issues

• 1. Confirmation of addition of unexplained investment u/s 69 for Rs.67 Lacs.

Judgment Outcome

Decided in favour of Assessee.

Precedents Relied Upon

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