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ACIT-1, Kanpur Versus Shri. Harish Kumar Narang

2015 (10) TMI 590 - ITAT LUCKNOW

Unexplained cash credit - CIT(A) deleted the addition - Held that:- On a careful perusal of the orders of the lower authorities, we find that undisputedly the Inspector’s report submitted to the ADIT, Kolkata was not furnished to the assessee, therefore, the assessee could not make his comments thereon. It is also undisputed fact that the creditor was assessed to tax as his PAN and assessment order were furnished before the Assessing Officer. Moreover, the balance sheet and profit and loss accou .....

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. We have also carefully perused the judgments referred to by the assessee and we find that it has been repeatedly held that once the assessee has discharged his onus of proving the creditworthiness & identity of the creditors and genuineness of the transaction, no addition under section 68 of the Act is called for. In the light of these judicial pronouncements, we are of the view that the ld. CIT(A) has properly adjudicated the issue in the light of the given facts. Therefore, we find no infirm .....

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50 crores made by the Assessing Officer under section 68 of the Income-tax Act, 1961 (hereinafter called in short the Act") on account of unexplained cash credit without appreciating the facts brought on record by the Assessing Officer. 2. The facts in brief borne out from the record are that during the course of assessment proceedings, the Assessing Officer has noticed that the assessee has received a sum of ₹ 1.60 crores during the year from M/s Shubhang Exports Ltd. The ledger copy .....

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ome Tax Inspector was asked to visit the Chairman of the said company, Shri. Brahma Nand Sharma to make necessary enquiries about the activities and details of the company. In response thereto, it was stated by Shri. Brahma Nand Sharma that the company is being run by his son, Shri. Subhang and activities being carried out from Kolkata. 3. Accordingly, a letter under section 133(6) of the Act was written to M/s Shubhang Exports Ltd., 203, Sarad Bose Road, Kolkata requiring to furnish certain doc .....

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k statements were provided to M/s Arora Enterprises with a request to submit before the Assessing Officer. The Assessing Officer accordingly issued commission under section 131(1)(d) of the Act to Shri. Nayanjyoti Nath, Assistant Director of Income Tax, Unit 1(4), Kolkata with a request to enquire about the existence of the company and its capacity, creditworthiness and genuineness of the transactions. The report was received by the Assessing Officer from Shri. Nayanjyoti Nath, Assistant Directo .....

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the copy of PAN, copy of ITR filed for assessment year 2011-12, confirmation, copy of receipt of the registered reply sent to the ACIT and other relevant documents before the ld. CIT(A). The ld. CIT(A) confronted all these evidence to the Assessing Officer. It was also stated before the ld. CIT(A) that the assessee has furnished confirmation, PAN, bank accounts, balance sheet of M/s Shubhang Exports Ltd. showing loan advanced by them through cheque, but the Assessing Officer has not provided th .....

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ition of ₹ 1.60 crores to ₹ 1.50 crores. 5. Having carefully examined the details available before the ld. CIT(A) in the light of assessee s contentions, he was of the view that M/s Shubhang Exports Ltd. is assessed to tax vide PAN AAJCS1526R and from the balance sheet and bank statement of the said company, it is seen that the depositors had sufficient funds to make deposits with the assessee. It was also noticed by the ld. CIT(A) that the deposits were through cheque and credits in .....

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s. Subhang Exports Limited is assessed to tax vide PAN AAJCS 1526 R, From the balance sheet and bank statement of the said company it is seen that the depositor had sufficient funds to make deposits with the appellant. All the deposits are through cheques. Credits in bank account are mostly through cheques/clearing. Cash deposits' on some dates are of very nominal and meager amount. About the address of the company at Kolkata sufficient evidences have been furnished by the appellant. The so .....

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g their onus in proving the identity, genuineness of transactions and creditworthiness of the depositor. Reliance is also placed on the following decisions reached by various High Courts in additions to cases discussed above (supra) 1. 71 DTR 371 (All.) 2012 D.K. Shares & Securities Limited. 2. 330 ITR 298 (Del.) 2011 CIT Vs. Dwarkadish Investment (P) Ltd. 3. 2012 ITOL 226 HC DEL -IT -CIT Vs. Kamdhenu Steels & Alloys Ltd. 4. 338 ITR 563 (Del.) 2011 CIT Vs. Mayawati 5. 254 CTR 648 (Raj.) .....

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ubmitted the details of their share application/creditors with cheque No, bank details, PAN, amount, address etc. as per their books of accounts. Thereby, the assessee has discharged his onus of explaining the credit appearing in his books of accounts. Accordingly, on overall consideration of facts and circumstances of the case and judicial pronouncements (Supra), the addition of ₹ 1,50,00,000/- deserves to be deleted Hence, the addition is hereby deleted. 6. Aggrieved, the Revenue has pre .....

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which lays upon it, addition under section 68 of the Act is not called for. In support of his contention, the ld. counsel for the assessee has placed reliance upon the following judgments:- 1. CIT vs. Orissa Corporation Pvt. Ltd., 159 ITR 78 (SC). 2. CIT vs. Ranchhod Jivabhai Nakhava, 208 Taxman 35 (Guj). 3. CIT vs. Swarkadhish Investment (P) Ltd., 330 ITR 298 (Del) 4. CIT vs. H.S. Builders (P) Ltd., 78 DTR 169 (Raj.) 5. CIT vs. Arun Kumar Kothari, 254 CTR 648 (Raj) 6. CIT vs. Mishra Preservers .....

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ot supplied to the assessee despite repeated requests. But the Assessing Officer has made the report as basis for addition. It was further contended that the ld. CIT(A) has appreciated the evidence filed before him. 8. Having carefully examined the orders of the lower authorities in the light of the rival submissions, we find that the Assessing Officer has doubted the genuineness of the creditors and after making enquiry from the Kolkata ADIT, he treated this credit to be unexplained and made ad .....

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