TMI Blog2013 (10) TMI 85X X X X Extracts X X X X X X X X Extracts X X X X ..... and confirmed by the Tribunal – Decided against the Revenue. - Income Tax Appeal No. - 46 of 2010 - - - Dated:- 30-9-2013 - Hon'ble Rajiv Sharma And Hon'ble Dr. Satish Chandra, JJ. For the Appellant : D. D. Chopra, Sidhath Dhaon For the Respondent : Amit Shukla, Surendra K. Garg ORDER (Delivered by Hon'ble Dr. Satish Chadra J.) Present Appeal under Section 260-A of the Income Tax Act 1961 has been preferred by the Department against the judgment and order dated 30.12.2009 passed by the Income Tax Appellate Tribunal, Lucknow in I.T.A. No.876/Luc/2008 for the assessment year 2004-05. On 06.09.2009 a coordinate Bench of this Court has admitted the instant appeal on the following substantial question of law : "Wheth ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... under Section 68 of the Act as per the ratio laid down in the case of CIT vs. Banwarilal Bansidhar; 229 ITR 229 (Alld), where it was observed that when the books of accounts are rejected or ex-party assessment is made, the AO cannot make addition under Section 68 of the Act, which has to be necessarily on the basis of the entries in the books, which were rejected. Further, the learned counsel submits that the sundry creditors were in various categories who have supplied the Yarn to the assessee factory. All the purchase bills were reflected in the books of accounts. The payments were made by the cheque. In some categories, the payment of interest was made to the creditors and reflected in a separate interest account, which was verified by ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... books of the recipients and made the addition by adopting short cut method. The identity creditworthiness and genuineness have been proved beyond doubt as observed by the First Appellate Authority and confirmed by the Tribunal. Needless to mention that the First Appellate Authority has co-terminus power with the power of the A.O. The appellate authority has all the powers which the original authority has, subject to condition/restriction, if any, prescribed by law as per the ratio laid down in the case of Jute Corporation of India Limited vs. CIT, 187 ITR 688, 693 SC; and CIT vs. Nirbhay Ram 224 ITR 610 SC. In the instant case, concurrent findings have been given by both the appellate authorities and in the absence of any adverse mate ..... X X X X Extracts X X X X X X X X Extracts X X X X
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