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2018 (9) TMI 882 - HC - Income TaxAddition u/s 68 - unexplained cash credit - assessment records that the “feeder accounts” were opened either in the name of the assessee’s employees or in the name of those who operated for consideration and operated at the instruction of Mr. Ashok Gupta, proprietor of the assessee and these individuals denied of having any knowledge of transactions in those bank accounts - Held that:- Having regard to Kale Khan [1963 (2) TMI 33 - SUPREME COURT] and D.K. Garg [2017 (8) TMI 450 - DELHI HIGH COURT] it is held that per se the ITAT could have not ruled out taxability under Section 68, given the unsatisfactory nature of the explanation provided by the assessee. This court notices, at the same time that inconsistent approaches were adopted by the lower revenue authorities for two years: for the first block period, ending with AY 2000-2001, the assessee was sought to be taxed for a total amount of ₹ 71,396,211/-; for the later block period the CIT taxed (out of the same amount) only the sum of ₹ 3,99,35,142/-. It appears that the assessee could satisfactorily explain the genuineness and other necessary ingredients needed under Section 68 with respect to the balance except inability to co-relate the cheque or instruments with the creditor concerned. Given that on these aspects, the findings were in favour of the assessee (which do not appear to have been interfered with), the revenue’s appeal can only succeed in part. It is held that the revenue’s appeal has to succeed in part; the amount of ₹ 3,99,35,142/- in the account of the assessee can be taxed under Section 68 of the Act. The appeal is allowed to this extent.
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