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2016 (10) TMI 366 - HC - Income TaxAddition made on account of unexplained cash credit /s 68 - failure to prove creditworthiness of the creditor - Held that:- The question pertains to an amount of ₹ 6.85 lacs, which the assessee claim, to have received by way of loan from one M/s.Pepilon Exports. After one round of remand, the assessee produced necessary documents such as the bank statement of Sarvoday cooperative bank of M/s.Pepilon Exports as well as that of the assessee. It was noticed that a cheque was issued by M/s.Pepilon Exports in favour of the assessee in January 1997 for the said sum of ₹ 6.85 lacs. On the same day, the amount was transferred to the account of the assessee which was also reflected in the assessee's bank statement. Commissioner of Income-tax (Appeals) and Tribunal therefore found that the entire transaction was a bank transaction. The Assessing Officer however, was of the opinion that since Sarvoday bank was in liquidation, further inquiry with the said Bank could not be made. Merely because bank has gone in liquidation would not be sufficient reason to doubt the bank transaction in support of which, there was ample other evidence produced by the assessee. - Decided in favour of assessee.
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