TMI Blog2011 (9) TMI 175X X X X Extracts X X X X X X X X Extracts X X X X ..... instead of adopting such course, the Assessing officer himself could not enter into the return of the creditor and brand the same as unworthy of credence. - Decided in favor of assessee. - ITAT No. 263 of 2011 & GA No. 2856 of 2011 - - - Dated:- 21-9-2011 - BHATTACHARYA, DR. SAMBUDDHA CHAKRABARTI, JJ. The Court : This appeal is at the instance of the Revenue and is directed against order dated 13th May, 2011, passed by the Income Tax Appellate Tribunal, `A Bench, Kolkata, in ITA No.783/Kol./2010 relating to assessment year 2001-02, by which the Tribunal has dismissed the appeal preferred by the Revenue. Being dissatisfied the Revenue has come up with the present appeal. The facts leading to the filing of this appeal may be summe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... was a registered company who was assessed to tax and had been filing its Return regularly and the amount of Rs.1 Crore paid by such creditor was also reflected from the balance-sheet and profits and loss account of the said creditor. In such circumstances, the CIT(Appeal) was of the view that the assessment officer of the assessee in question cannot take any adverse view against the assessee on the basis of the transaction of the creditor. According to the CIT(Appeal), if the selling of share below market rate by the creditor had any implication from the income tax angle, the action had to be taken against the creditor and not against the assessee. The CIT(Appeal) thus dismissed the appeal. Being dissatisfied the Revenue preferred an appe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... fficer of the creditor but instead of adopting such course, the Assessing officer himself could not enter into the return of the creditor and brand the same as unworthy of credence. So long it is not established that the return submitted by the creditor has been rejected by its Assessing Officer, the Assessing officer of the assessee is bound to accept the same as genuine when the identity of the creditor and the genuineness of transaction through account payee cheque has been established. We find that both the Commissioner of Income Tax(Appeal) and the Tribunal below followed the well-accepted principle which are required to be followed in considering the effect of Section 68 of the Act and we thus find no reason to interfere with the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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