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2015 (10) TMI 940 - AT - Income TaxUnexplained cash credits - addition u/s 69 - CIT(A) deleted the addition - Held that:- CIT (A) only considered the confirmation along with the PAN numbers and held that the assessee’s burden had been discharged by relying on various decisions. Recently various High Courts including Hon’ble Delhi High Court in case of CIT vs. Youth Construction Pvt. Ltd. (2012 (11) TMI 595 - DELHI HIGH COURT) has held that the assessee has to establish the creditworthiness of the cash creditors. The Hon’ble Supreme Court has dismissed the SLP by considering its own decision in case of Lovely Exports in [2008 (1) TMI 575 - SUPREME COURT OF INDIA ] held that the creditworthiness in case of cash creditors is required to be established. Therefore, the ld. CIT (A) was not right in allowing the appeal on the basis of genuineness of the transaction and identity of the persons only. The third ingredient to prove the cash creditors under section 68 i.e. creditworthiness has to be established. Therefore, we set aside the order of ld. CIT (A) to the AO. The assessee is directed to cooperate with the AO and furnish the requisite details. - Decided in favour of revenue for statistical purposes.. Trading addition - assessee did not produce the books of account - CIT(A) deleted the addition on the ground that the GP rate shown during the year under consideration is better in comparison to preceding year and no addition is warranted - Held that:- Even the justification given by the assessee is not based on any evidence. Further, the ld. CIT (A) also had confirmed the disallowance of expenses on the basis of audit report under section 44AB of the IT Act which shows that assessee’s books are not reliable. As such, the finding given on GP by the ld. CIT (A) is against its own finding. Therefore, in the interests of justice, this issue is also set aside to the AO and the assessee is directed to produce the books of account. If not possible, produce the certified copy of the complete books of account from the Excise Authorities to verify the correctness and completeness of the books of account and take decision on this issue. Thus this issue is also set aside for denovo order. - Decided in favour of revenue for statistical purposes..
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