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2018 (1) TMI 446 - AT - Income TaxAddition u/s 68 - CIT(A) had concluded that the assessee by raising loans from others, which had not been properly explained by him, had thus created assets to the said extent - Held that:- We would not hesitate to observe that even if the unsubstantiated reasoning of the CIT(A) was to be accepted, even then, without pointing out as to which unexplained cash credit of ₹ 38,94,877/- backed/sourced the addition of ₹ 38,94,877/- in the account of M/s Avdhoot Finance & Investments P. Ltd., no addition u/s 68 could validly be made in the hands of the assessee. We are afraid that the reasoning adopted by the CIT(A) to conclude that the addition of ₹ 38,94,877/- made by the A.O by characterizing the same as an unexplained cash credit in the hands of the assessee is beyond comprehension and cannot be accepted. We are of the considered view that as the provisions of Sec. 68 presupposes an unexplained cash credit, failing which no addition can validly be made under the aforesaid statutory provision, therefore, now when it remains as a matter of fact that not only the assessee had duly explained that the addition of ₹ 38,94,877/- had occasioned on account of a wrong journal entry which thereafter had been reversed, but rather, no such cash credit had been brought to our notice which could persuade us to conclude that the addition of the aforesaid amount of ₹ 38,94,877/- made by the A.O was rightly upheld by the CIT(A). We thus in the backdrop of our aforesaid observations not being persuaded to subscribe to the observations of the lower authorities, therefore, set aside the order of the CIT(A) and delete the addition - Decided in favour of assessee
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