Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2013 (11) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2013 (11) TMI 814 - ITAT HYDERABADAddition towards unexplained cash credit u/s 68 of the Income tax Act - Addition of Rs. 2,75,97,214/- - Both the AO and CIT(A) treated the amounts received by Assessee and deposited in the bank account as cash credits. It is Assessee's submission that there are outstanding debtors in the books from whom Assessee has to collected monies since Assessee was out of business during the year and all these outstanding debtors have been collected in cash and, therefore, these are not cash credits, but, are trade receipts in the form of cash - Held that:- Amounts received by Assessee are not cash credits but the same were recovery of the debtors, which are available in the books of account. Since Assessee furnished details of debtors and also the entries made in the books of account, both the AO and the CIT(A) have erred in considering recoveries from deposits as cash credits - It is also not the case of the AO that investments made in Sree Rayalaseema Steel Rerolling Mills from unexplained sources. Having explained the source of investment in the other firm being recoveries from debtors, the same cannot be doubted just because Assessee recovered them in cash – Decided in favor of Assessee.
|