TMI Blog2012 (4) TMI 315X X X X Extracts X X X X X X X X Extracts X X X X ..... rt of Tribunal nor did it conclude either in favour or against the appellant or Revenue. - Decided against the assessee. - Tax Appeal No. 2012 of 2009 - - - Dated:- 2-3-2012 - Akil Kureshi and Ms. Sonia Gokani, JJ. Manish J. Shah for the Appellant. Mrs. Mauna M. Bhatt for the Respondent. JUDGMENT Ms. Sonia Gokani, J. Following is the factual background which would be necessary for understanding the questions raised in the present Tax Appeal, preferred u/s 260-A of the Income Tax Act (hereinafter referred to as "the Act") . The appellant-original assessee is a private limited Company engaged in the business of manufacturing of chemicals viz . "precipitated silica", "aluminum silicate" etc. 2. For the Assessment Year 1997-98, return of income was filed by the appellant and the Assessing Officer, on scrutiny assessment of the return required the appellant to prove the nature and source of 484 cash credits. On not having been satisfied with the reply filed by the appellant particularly with respect to the addresses of depositors, PAN of those persons, their confirmation letters, etc. total addition of a sum of Rs. 4,52,20,332/- was made by the Assessing O ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the question of addition of the cash credit of Rs. 4,54,74,332/- and related interest of Rs. 15,86,346/- and instead sending the same back to the Assessing Officer ? (II) Whether on the facts and in the circumstances of the case, the Tribunal ought to have held that the appellant has discharged the onus of proving the nature and source of the cash credit of Rs. 4,54,74,332/- from 484 parties, and therefore, neither the said amount nor the related interest of Rs. 15,86,346/- is addible as income under section 68 of the Income Tax Act, 1961 ? 7. Although questions proposed are more than one, it essentially questions the order of remand made by the Tribunal setting-aside the order of CIT(Appeals) which deleted the entire addition of Rs. 4,52,20,332/- . 8. It is vehemently submitted by learned senior counsel Shri J.P. Shah appearing with learned counsel Mr. M.J. Shah that Tribunal has committed a serious error in restoring the matter to the file of Assessing Officer without giving any reasonings much less the cogent findings while setting-aside the order of CIT(Appeals). He pointed out how factually correct findings CIT(Appeals) has rendered and how incorrect approach is adop ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nce adduced by assessee-respondent particularly when the Revenue has not disputed the genuineness of such facts, nor is there any mention in the order challenging these vital aspects. CIT(Appeals) recorded that the return of income was filed on 28.11.97 and after two years in the month of November, 1999, assessment proceedings began. All depositors who were individual; and were illiterate, and who had also repaid the entire loan. Thus, when after three years, the total 484 parties which were largely situated in the city of Bhavnagar and nearby area as were asked to state in respect of these transactions, there would be numerous difficulties the assessee would experience and it was lamented by the CIT(Appeals) that on one hand if the Assessing Officer chose to make inquiry and on the other hand when such details of confirmation were received, acceptance of the same cannot be denied only on the ground of method or manner of furnishing. It would not be necessary to dilate these facts further in respect of these confirmation letters. 14. As far as order of CIT(Appeals) is concerned, heavy reliance is placed on some of the findings arrived at by it, those vitally relevant are reprod ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... as far as the order of Tribunal is concerned is the fact that without setting-aside the positive findings of the CIT(Appeals), it has chosen to deal with the issue. Tribunal dealt with the same as follows: "29. We have heard the rival submissions and perused the orders of the lower authorities and the materials available on record. In the instant case we find that the assessee has claimed to have received Rs.4.52 crores as deposits from 484 persons. The Assessing Officer observed that the confirmations of the depositors in a number of cases were filed on 15.2.2000 and the assessment was getting barred by limitation in a short time. Hence, he opined that the required material to establish the genuineness of the cash credit was not filed by the assessee and he, therefore, added the same to the income of the assessee. On the other hand, the CIT(A) observed that no positive material was brought on record by the Revenue to disprove the claim of the assessee which was prima facie prove by the assessee by furnishing confirmation. We also observe that the CIT(A) has observed that though the return was furnished on 28.11.97 but assessment proceedings were initiated by the A.O. only after ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... it to restore the matter to file of Assessing Officer for examining the entire issue and to avail sufficient opportunities to the assessee for proving its case. In our opinion, there ought not to be in any apprehension in the minds of appellant-assessee that as it is made to pass through the said ordeal, categorical and positive findings of CIT(Appeals) would be lost and after many years when this exercise once again is to be undertaken, the appellant-assessee will be in disadvantageous position in as much as the order of Tribunal prejudices none and the same is born out of a balanced approach. Inquiry pertains to all the 483 deposits and depositors and therefore, on not finding proofs concerning all, Tribunal when deemed it appropriate to avail an opportunity once again, this order cannot be assailed on the ground of non application of mind or being biased. 17. When this Court examines the appeal under Section 260-A of the Income Tax Act, as required by the statute, it would entertain only those appeals which would propose substantial question of law. Here, there is an absence of question of law not to talk of substantial question of law. There is no material found to point ou ..... X X X X Extracts X X X X X X X X Extracts X X X X
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