TMI Blog2022 (11) TMI 22X X X X Extracts X X X X X X X X Extracts X X X X ..... spicion. Once the Books of Accounts and the facts reflected therein showed the source of the fund and the identity of the party and the aspect that Books of Accounts of the assessee also reflected the receipt and the amount was repaid by the assessee, it was not open to the AO to raise doubts about the creditworthiness of the creditor. AO ignored the relevant material. Appellate Authority as well as the Income Appellate Tax Tribunal concurrently reversed the findings of the Assessing Officer on the said count. It could not be said that any question much less any substantial question of law arise in the appeal. - R/TAX APPEAL NO. 318 OF 2022 - - - Dated:- 11-7-2022 - HONOURABLE MR. JUSTICE N.V.ANJARIA AND HONOURABLE MR. JUSTICE BHARGA ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... quently reopened under section 147 of the Act upon receipt of the information from the investigating wing. The said information was in respect of credits received from one M/s. Rachna Finlease Pvt. Ltd. . Thereupon, the income of the assessee came to be reassessed after making addition of Rs. 39,05,50,000/- under section 68 of the Act treating the same towards unexplained credit receipts from the said M/s. Rachna Finlease Pvt. Ltd.. Order was passed on 13.12.2019 under section 147 of the Act. The assessee company filed appeal before the Commissioner of Income Tax (Appeals) which was allowed by the Appellate Authority as per order dated 27.5.2017. The Revenue thereafter preferred appeal before the Tribunal against the order of the Appellate ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of the said addition was considered by the Commissioner of Income Tax (Appeals) in the Appeal preferred by the assessee, it was found that there was no rational basis in the order of the Assessing Officer in rejecting the application of the appellant to hold that the creditworthiness of the said named creditor was not proved by the appellant. It was the view of the Appellat Authority that invoking provisions of section 68 of the Act was not legally tenable in the facts of the case. It was recorded that the appellant assesee had discharged its onus under section 68 of the Act and it also furnished the details of source of the fund and had established identity and creditworthiness of the creditor in relation to the said amount. The Appellate ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the source of fund at the hands of the party. 5.3 The Appellate Tribunal dismissed the Appeal of the Revenue on the said count holding and observing as under, It was alleged by the Assessing Officer that the amount received by the assessee represents the accommodation entries from M/s. Rachna Finlease Pvt. Ltd. for the reason that such company was not filling its income tax return. In this connection, we find that the finding of the Assessing Officer is not correct to some extent. It is for the reason that the company namely M/s. Rachna Finlease Pvt. Ltd. has filed income tax return in response to the notice issued under section 148 of the Act and accordingly the assessment was completed under section 147 read with section 143(3) of ..... X X X X Extracts X X X X X X X X Extracts X X X X
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