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2013 (6) TMI 422 - ITAT MUMBAIUnexplained credit u/s 68 - CIT(A)deleted the addition - Held that:- The order of the CIT (A) is quite elaborate one as it dealt with the statement recorded by the Revenue and Mr. Haresh V. Malani on 24.11.2010, dealt with identity of Mr. Haresh V. Malani, the alleged creditor in this case. Undisputedly, CIT (A) has also addressed how Mr. Haresh V. Malani has liability of Rs 1.08 cr to pay to the assessee, how he has creditworthiness by virtue of huge transactions appearing in his bank account etc. Case of the Revenue that the assessee needs to explain the source of the funds deposited in the bank account of Mr. Haresh V. Malani, who merely repaid the liability with assessee is not sustainable in law. The facts suggest that Sri Haresh Malani merely repaid the alleged sum out of the bank balance. Thus with the confirmation filed giving particulars of the sources of income of the payer of Rs 20 lakhs, the assessee discharged his part of the onus. Mr Haresh Confirmed the payment of the sum of Rs 20 lakhs as part of repayment of Rs 1.08 cr. If necessary, the AO should have initiated proceedings against Sri Haresh V Malani instead - order of CIT (A) is reasonable. Against revenue.
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