9911796707
TMI Blog2011 (3) TMI 1430X X X X Extracts X X X X X X X X Extracts X X X X ..... 2000, this Court had formulated the following two questions:- Whether the appellate tribunal is right in law and on facts in holding that since amount of Rs.9,63,596/- has been taxed in the regular assessment made under section 143(3) for assessment year 1993-94 it should not be taxed on protective basis in the block assessment? Whether the appellate tribunal is right in law and on facts in holding that to the entries of Rs.33,28,000/- in the books of account of the assessee, provisions of section 68 are not attracted? 3. The assessment pertains to block assessment period 86-87 to 95-96 and the period from 1st April, 1995 to 08 th September, 1995. In response to notice dated 26th October, 1995 issued under section 15 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n protective basis because the said amount had already been brought to tax during the assessment year 1993-94 on a substantive basis. 5. In financial year 1991-92, the assessee had shown that it had received a loan through cheque of Rs.33,28,000/- on 15th May, 1991 from Food-O-Mec Machinery. However, since Food-O-Mec Machinery was found to be a non-existent and non-genuine concern, the Assessing Officer considered the same as unexplained income under section 68 and added the same as undisclosed income for the assessment year 1992-93. 6. Being aggrieved, the assessee carried the matter in appeal before the Tribunal which came to be allowed by the impugned order. The Tribunal was of the opinion that the additions were totally ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... erent appeals. The Tribunal was of the view that having regard to the entries which were only paper transactions were proved by entries in the bank accounts of the parties, it was difficult to hold that the credits in the books of account were not genuine for the purposes of section 68 of the Act. According to the Tribunal the entries were fully explained for the limited purpose of section 68 of the Act. Observing that the Tribunal was not concerned with the legal implications involved in other appeals, the Tribunal held that the addition having been made under section 68 of the Act which was not applicable, the same was required to be deleted. 8. Mr. M.R. Bhatt, learned senior advocate appearing on behalf of the appellant vehementl ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to decide the issue on merits after ascertaining the outcome in the appeal filed by the assessee against the order under section 143(3) of the Act. Similarly, in relation to the second issue also, it was submitted that the Tribunal had erred in not appreciating that the entries were self-serving entries purporting to explain the source of cash credit and could not have been treated as explained. That the Tribunal had incorrectly observed that section 68 is not applicable in assessment of block periods as the same directly militates against section 158BB(2) of the Act. 9. On the other hand, Mr. B.D. Karia, learned advocate appearing on behalf of the respondent supported the impugned order made by the Tribunal and submitted that the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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