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2017 (2) TMI 266 - ITAT MUMBAIUnexplained cash credits under section 68 - Held that:- The approach of the CIT(A) in dissecting the transaction and holding it to be ingenuine is quite straight jacketed and myopic. The CIT(A) impliedly suggests that a transaction is to be held as ingenuine, if the money is not returned back when the purpose for which it was given was not achieved. In our considered opinion, the aforesaid approach of the CIT(A) would give weightage to suspicion than the evidence available in order to evaluate the genuineness of a transaction. The genuineness of the transaction has to be evaluated at the time when the transaction was carried out. We may hasten to add here that we are not professing that the post-transaction events are not relevant to evaluate the genuineness but what we are only trying to emphasize is that the imponderables of the business cannot be the sole basis to defeat the genuineness of a transaction, which the CIT(A) has sought to do in the present case. Therefore, considering the fact that the explanations rendered by the assessee have not been found to be false, we find no reason for the CIT(A) to uphold the addition u/s. 68 in relation to the credit appearing in the name of M/s. Ganesh. - Decided in favour of assessee
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