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2013 (12) TMI 372 - HC - Income TaxUnexplained cash credit - Held that - CIT(A) was satisfied with respect to the genuineness of the transaction and creditworthiness of Shri Ishwar Adwani - The said loan amount has been repaid by the assessee to Shri Ishwar Adwani in the immediate next financial year and the Department has accepted the repayment of loan without probing into it - Decided against Revenue.
Issues:
1. Addition of Rs.1.45 Crores as unexplained cash credit under Section 68 of the Income Tax Act. Analysis: The case involved a dispute regarding the addition of Rs.1.45 Crores as unexplained cash credit under Section 68 of the Income Tax Act for the Assessment Year 2006-07. The Assessing Officer had added this amount to the total income of the assessee, alleging that a loan from Shri Ishwar Adwani was not satisfactorily explained. The CIT(A) subsequently deleted this addition after considering the letter from the assessee to the Assessing Officer and the confirmation letter from Shri Ishwar Adwani. The CIT(A) found the transaction genuine, leading to the deletion of the addition. On appeal before the ITAT, the revenue challenged the CIT(A)'s decision. However, the ITAT upheld the CIT(A)'s order, dismissing the revenue's appeal. The revenue then filed a Tax Appeal before the High Court, questioning the ITAT's decision and arguing that the matter should have been remanded for further inquiry. The High Court, after considering the arguments, noted that the CIT(A) was satisfied with the genuineness of the transaction and the creditworthiness of Shri Ishwar Adwani. It was revealed that a significant portion of the loan had been repaid by the assessee in the subsequent financial year, which the Department had accepted without investigation. The High Court found no reason to interfere with the ITAT's decision, stating that no substantial question of law arose in the case. The High Court ultimately dismissed the Tax Appeal, upholding the decision of the ITAT and affirming the deletion of the addition of Rs.1.45 Crores as unexplained cash credit under Section 68 of the Income Tax Act for the Assessment Year 2006-07.
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