2009 (9) TMI 621 - AT - Income Tax

Additions Under s. 68 - Addition of Rs. 1, 17, 33, 280 as unexplained cash credit - The issue is squarely covered by the decision of the Tribunal in the case of Rajat Ispat (P) Ltd. wherein the Tribunal has followed the decision of the Hon ble Supreme Court in COMMR.OF INCOME TAX VERSUS M/S LOVELY EXPORTS(PVT)LTD. (2008 -TMI - 76942 - SUPREME COURT OF INDIA)as well as the decision of the Hon ble jurisdictional High Court in the case of Vyankateshwar Ispat (P) Ltd - Revenue s appeal stands dismissed.

Summary

The Appellate Tribunal ITAT Bilaspur delivered a judgement in 2009 regarding an appeal by the Revenue against an order by the CIT(A) for the assessment year 2005-06. The Revenue contested the deletion of an addition of Rs. 1,17,33,280 as unexplained cash credit under section 68 of the IT Act. The AO added the amount as unexplained cash credit due to unclear addresses and lack of bank account documentation from the share applicants. The CIT(A) deleted the addition based on the share applicants being assessed to tax and their PAN details being available. The Tribunal upheld the CIT(A)'s decision, citing previous judicial pronouncements. The Revenue's appeal was dismissed, and the decision was considered legally correct based on previous Tribunal and High Court rulings. The judgement highlights the importance of providing evidence to prove the identity, creditworthiness, and genuineness of share applicants to avoid unexplained cash credit additions.