TMI Blog2004 (8) TMI 26X X X X Extracts X X X X X X X X Extracts X X X X ..... e(s) : N. K. SUD., A. K. GOEL. Court : JUDGMENT The judgment of the court was delivered by N.K. Sud J. - The Revenue has filed this appeal under section 260A of the Income-tax Act, 1961 (for short "the Act") against the order of the Income-tax Appellate Tribunal, Delhi Bench A, New Delhi (for short "the Tribunal"), dated July 28, 2003, pertaining to the assessment year 1992-93. The Revenue is aggrieved by the order of the Tribunal whereby its appeal against the order of the Commissioner of Income-tax (Appeals) deleting the additions of Rs. 22,01,500 on account of unexplained cash credits and Rs. 94,602 on account of interest claimed thereon has been dismissed. The relevant facts pertaining to this issue may first be noticed. T ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... March 20, 1995, the Assessing Officer treated the cash credits of Rs. 22,01,500 as unexplained and added it to the income as income from undisclosed sources under section 68 of the Act. As a corollary thereto, interest paid on these unexplained credits amounting to Rs. 94,602 was also disallowed. The assessee challenged these additions in appeal before the Commissioner of Income-tax (Appeals) before whom he furnished the following written submissions: "The appellant has already annexed a chart in the statement of facts giving complete data of all the seven creditors, a perusal of which would leave no doubt that all payments were received by payee's account cheques and all of them were existing assessees with the Income-tax Officer, Pan ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... aring of appeal and I feel inclined to agree with the same. As has been brought to my notice these creditors except M/s. Riba Textiles Pvt. Ltd. are being assessed by the Assessing Officer who has completed the assessment under appeal and I am further informed that the relevant records of these creditors are also lying with the said Assessing Officer from where he could conveniently make a counter check and verification of the version of the appellant with regard to these credits. It is also pointed out that even the case of M/s. Riba Textiles Pvt. Ltd. was being assessed with another Assessing Officer in I.T. office, Panipat itself and their return and balance-sheet could be available for verification of credit appearing in the accounts of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ntradictory information do not cast any doubt on the genuineness of credits as far as the appellant's case is concerned. If at all there could be any deficiency on the part of the creditors who give these amounts by account payee cheques, the action could have been considered in the cases of these creditors instead of the appellant's case. Considering all the relevant facts aspects of the matter I hold that the addition of Rs. 22,01,500 is not justified and hence the same is deleted. This ground of appeal is allowed .... 11. It is submitted by the appellant that this ground of appeal is consequential to issue dealt with in ground of appeal No. 2. I have perused the same, the Assessing Officer had treated the credits of Rs. 22,01,500 as no ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tion of the creditors, the amount standing to their credit be not treated as unexplained cash credit under section 68 of the Act. It was not the case of the assessee that the creditors were not responding to his letters or refusing to attend the office. The assessee did not even make a request to the Assessing Officer to make the necessary verification. The assessee appears to have furnished certain material before the Commissioner of Income-tax (Appeals) who has straightaway accepted the same. The order does not show that he afforded any opportunity to the Assessing Officer to verify the correctness of the material produced before him. He has also not recorded a finding that he has himself made any verification from the records of the cred ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... before them with the records of the creditors. This has not been done. Accordingly, we are satisfied that the appellate authorities have not dealt with the matter properly. In this view of the matter, we set aside the findings of the Assessing Officer and the two appellate authorities on this issue and restore the matter back to the file of the Assessing Officer for fresh adjudication. The assessee shall place before him all the material filed by it before the Commissioner of Income-tax (Appeals) and the Assessing Officer shall make further verifications from the records of the creditors, if necessary. In case, the required information is not available in the records of the assessee, the Assessing Officer shall be at liberty to require th ..... X X X X Extracts X X X X X X X X Extracts X X X X
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