Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2015 (7) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2015 (7) TMI 321 - AT - Income TaxUnexplained cash credits - creditworthiness and genuineness of the creditor was not proved by the assessee - loan is not appearing in the balance sheet and the assessee had not declared any loss from sale trading as claimed in the statement recorded on oath U/s 131 - CIT(A) deleted the addition - Held that:- It is undisputed fact that the assessee had disclosed derivative transaction loss at ₹ 10,14,308/- through the broker namely M/s Mangal Keshav Securities Ltd. The payments and receipts for these transactions were made through ICICI Bank account No. 5075. All the transactions have been recorded in the books of account maintained by the appellant. There was a mutual agreement with Sh Praful Patel that he was to bear all the losses which were incurred in the derivative transaction, which has been received in cash at ₹ 9,36,240/- and balance amount of ₹ 78,068/- had been shown as receivables. Due to this reason, the assessee had not claimed any loss on account of derivative transaction in computation of income. Even it is presumed that the assessee had introduced own cash it has been shown as income and it could be adjusted against the business loss. The ld DR has not controverted the finding given by the ld CIT(A). Therefore, we uphold the order of the ld CIT(A) - Decided against revenue. Disallowance U/s 40A(3) - the assessee had adjusted the creditors against the debtors on 31st March, 2008, which is covered U/s 40A(3) - CIT(A) deleted the addition - Held that:- As per record, these entries were made with the consent of creditor and debtors. These creditors were pertained to earlier year, which has been debited in A.Y. 2007-08 whereas the year under consideration is 2008-09. The ld CIT(A) also relied upon the decision of Coordinate ITAT, Ahmadabad Bench in the case of Anand Kumar Rawatram Joshi Vs. ITO (2011 (11) TMI 98 - ITAT, Ahmedabad) and Tushar A Sanghvi (HUF) Vs. ITO (2012 (6) TMI 594 - ITAT AHMEDABAD ), on identical issue, which has not been controverted by the ld DR. The Hon’ble Punjab & Haryana High Court in the case of CIT Vs. Kishan Chand Maheshwari Dass [1979 (9) TMI 58 - PUNJAB AND HARYANA High Court] wherein identical issue has been decided in favour of the assessee and held no violation U/s 40A(3) of the Act. - Decided against revenue.
|