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2016 (10) TMI 49 - HC - Income TaxUnexplained loan - Variation in the copies of Capital Account partner as produced in the court and copies of account filed with the Income-tax Department - failure to to produce books of accounts - Held that:- We have gone through the order of the Commissioner and find therein no proper analyses of the statements of the persons who were said to have loaned money to the assessee through its finance division. One of the persons whose statement was considered by the Commissioner was Harish Kumar son of Dharam Pal, who is stated to have “not categorically denied the transaction”. How such a vague statement could support the defence set up by the assessee, is cause of wonder for us. Sher Singh son of Bishan Dass, is stated to have confirmed answers to questions No.7 and 8. The Commissioner's order nowhere refers to questions No.7 and 8 and, therefore, it is impossible to conclude as to what was confirmed by Sher Singh. Kuldip Singh son of Onkar Singh is said to have confirmed answers to questions No.4 and 5 and Dinesh Kumar son of Onkar Singh is said to have confirmed questions No.6 and 7. In their cases also it has nowhere been discussed by the Commissioner as to what were the questions in their cases. As per the statements of said Kapil Kumar and Ramesh Kumar, they did not loan any money to the assessee or its finance division. This contradicts the assessee's stand that this fact has also been ignored by the Commissioner. The statements of the other persons who allegedly had given loans to the assessee through its finance division have also not been considered the way they deserved to be. It is thus clear that the order of the Commissioner lacks consideration of material and crucial facts. The Commissioner further goes on to hold that the transactions have “more or less been unequivocally confirmed.” This finding of his is not only self-contradictory but also against the record. The order of the Tribunal does not clarify the matter either. No discussion is found therein with regard to the above-referred statements of the alleged creditors of the assessee-firm. It was observed that the imprest account “does not necessarily” form part of capital account. Reliance was placed on the statement of Surinder Mahajan, a partner of the assessee without comparing the same with the statements of the alleged creditors. After simply finding fault with the assessing officer for having not found the source of repayment of the said amount of ₹ 1,70,00,000/- and having failed to find out about the finality of proceedings before the civil court, the Tribunal gave its stamp of approval to the order of the Commissioner without considering the matter in the correct perspective The Tribunal, which is the final fact finding authority, failed to properly analyse the evidence on record and without appropriate reasons confirmed the order of the Commissioner with regard to the deletion of ₹ 1,70,00,000/- from the income of the assessee. In view of the above, the order of the Tribunal is found to be perverse. While setting aside the order of the Tribunal, we remit the matter to the Tribunal for a fresh decision on merits. - Decided in favour of revenue
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