S.69: Unexplained investments-Source of investment-Tribunal ought to have returned a specific finding
whether explanation offered by assessee satisfactory-Matter remanded.
Section 69 of the Income-tax Act, 1961, envisages two situations when an addition can be made on account of
unexplained investments. The first situation is where the assessee does not offer any explanation about the nature and source of the investment. The second situation is where the explanation offered by him is, in the opinion of the Assessing Officer, not satisfactory. The Court allowing the appeal held that the assessee had offered an explanation but there was no express finding of the Commissioner (Appeals) or of the Tribunal as to whether the explanation offered by the assessee was satisfactory. Although an inference could possibly be gathered that the Commissioner (Appeals) had found the explanation to be satisfactory the matter could not be decided on inferences. The Tribunal is the final fact finding authority and, therefore, it is incumbent on the Tribunal to return a finding in clear and express terms. This is so, because it is only when the finding is clear that a question of law based on those findings can be examined by the court. Therefore, the matter was remitted to the Tribunal to return a clear finding as to whether or not the explanation offered by the assessee was satisfactory. (A. Y. 2008-2009)
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