If all expenses via credit card paid through banks then such expenses shall not be treated as unexplained income of the assessee and thus, no additions shall be made under section 69.    Case: Income Tax Officer vs. Pallavi Srivastava The assessee being an individual filed its return of income. During the assessment, AO found that assessee declared salary and interest income in its return. In addition, as per AIR information, the assessee has paid Rs. 2,33,433 against the credit card bills and similarly investments were made in mutual funds. As nobody attended the case, the said expenditure remained unexplained within the meaning of section 69C of the Income-tax Act, 1961. Thus, AO made additions to the income of assessee in respect of credit card payment and investment in mutual funds as ‘income from undisclosed sources’.   On appeal to CIT (A), assessee explained that credit card was used for personal and other expenditures. CIT (A) also noticed that assessee received salary that was credited in specific bank account from which the assessee has made payment of credit card. To support this, assessee submitted copy of the bank statement, details of the credit card, ITR copy and Form 16. In respect of investments, it was submitted that the assessee through systematic investment plan has invested in different mutual funds. Thus, all the investments were through banks. CIT (A) verified all bank statements and concluded that all credit card expenses were paid through banks and investments were also out of its bank account. On this, revenue appealed to the Tribunal. The tribunal upheld that assessee has provided sufficient evidence and explanation to prove the genuineness of all the transaction. Thus, additions made by the AO as income from undisclosed sources’ shall be deleted. Hence, credit card payments through bank shall not be considered as unexplained expenses. _________________________________________________________________________________________