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PR. COMMISSIONER OF INCOME-TAX-2 Versus D AND H ENTERPRISES

Addition u/s 68 - Held that:- The assessee had produced all relevant details in its possession, namely, names, permanent account numbers, income tax returns, and bank statements of all the investors. The amounts in question had been received by way of account payee cheques. Having regard to the fact that the permanent account numbers and the income tax returns of all the investors had been furnished by the assessee, the Assessing Officer could have easily verified the same. He, however, placed r .....

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ion of law, much less a substantial question of law warranting interference. - TAX APPEAL NO. 195 of 2016 with TAX APPEAL NO.196 of 2016 - Dated:- 22-3-2016 - MS. HARSHA DEVANI AND MR. G.R.UDHWANI FOR THE APPELLANT : MR SUDHIR M MEHTA, ADVOCATE ORAL ORDER (PER : HONOURABLE MS.JUSTICE HARSHA DEVANI) 1. These appeals under section 260A of the Income Tax Act, 1961 (hereinafter referred to as the Act ) at the instance of the revenue, are directed against the common order dated 24.06.2015 passed by t .....

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ssing Officer, even though the persons could not be traced at the given addresses as the summons issued by the AO were returned back or could not be served as those persons were not available at the given addresses? [2] Whether on facts and in the circumstances of the case and in law, the Hon ble ITAT is justified in doubting the attempt made by the official of the Department in serving the Summons in A.Y. 2006-07, when the Summons were sent through Speed Post and the Postal authorities have not .....

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re returned back or could not be served as those persons were not available at the given addresses? [2] Whether on facts and in the circumstances of the case and in law, the Hon ble ITAT is justified in doubting the attempt made by the Department in serving the summons in A.Y. 2007-08, when the AO had issued summons not only during the course of assessment proceeding on 18.12.2009 but also during the course of remand proceedings on 25.10.2010 to verify the identity of the alleged depositors thro .....

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2007-08, the case of the assessee came to be selected for scrutiny assessment and a notice under section 143(2) of the Act was issued on 26.09.2008, which was duly served upon the assessee. In assessment year 2006-07, the assessment was completed under section 143(3) of the Act on 18.12.2008, determining the income of the assessee at ₹ 1,05,52,580/-. On the basis of the findings recorded in relation to assessment year 2007-08, the Assessing Officer reopened the assessment for assessment y .....

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stors. However, vide order sheet dated 04.12.2009, the Assessing Officer has directed the assessee to produce following details, namely, name, address, PAN, of all the persons who had made advances to the assessee and also to produce all these persons before him. Such exercise was to be carried out by the assessee before 11.12.2009. The Assessing Officer observed that on 18.12.2009, no one had attended on behalf of the assessee, therefore, he issued summons under section 131 of the Act to the in .....

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nts in the ordinary course of business. The assessee had submitted confirmations from all the persons, copies of their PAN with the Income Tax Department, copies of their bank statements and copies of the income tax returns for assessment year 2007-08. The assessee also submitted a list of forty persons who had filed their returns for assessment year 2008-09. It was further contended that the persons who had booked the plots in the project of the assessee were its prospective customers at the ti .....

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t year 2007-08 being the amount received during the accounting period relevant to this assessment year and the balance amount of ₹ 1,62,50,000/- received in the accounting period relevant to assessment year 2006-07 was added to the income of that year. The assessee carried the matters in appeal before the Commissioner (Appeals), who allowed the appeals. The revenue carried the matters in appeal before the Tribunal, but did not succeed. 4. Mr. Sudhir Mehta, learned Senior Standing Counsel f .....

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tal authorities. It was submitted that the assessee had failed to produce any of such persons before the Assessing Officer. It was submitted that it is by now well settled that merely because payments are made by cheques would not establish the genuineness of the transactions. In support of his submissions, the learned counsel placed reliance upon the decision of this court in the case of Manoj Kumar Saraf v. Income Tax Officer, ODS-II, [2014] 45 taxmann.com 63 (Gujarat). It was, accordingly, ur .....

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e assessee had furnished all the customers details like name, address, PAN, copy of income tax returns, bank statement, etc. and had, thus, discharged its primary onus as has been held by the Supreme Court in the case of Commissioner of Income Tax v. Orissa Corporation (P) Ltd., (1986) 159 ITR 78 (SC). He was further of the opinion that it was the duty of the Assessing Officer to verify the genuineness of these transactions by strictly enforcing the provisions of section 131 of the Act if at all .....

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onal Textiles v. Commissioner of Income Tax, (2001) 249 ITR 125, wherein the court held that if an assessee gives an explanation which is unproved but not disproved, that is, it is not accepted but circumstances do not lead to a reasonable and positive inference that the assessee s case is false, the explanation cannot help the department because there will be no material to show that the amount in question was the income of the assessee. The Commissioner (Appeals) was of the view that all the t .....

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ation in support of his case. He further observed that it was not the case of the revenue that any evidence had been brought on the record which even remotely indicated that the money originally belonged to the assessee and it had returned back to the assessee again. In the light of the above findings of fact recorded by him, the Commissioner (Appeals) allowed the appeal and set aside the additions made by the Assessing Officer. 6. The Tribunal, in the impugned order, has concurred with the abov .....

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