2017 (9) TMI 2001 - HC - Income Tax

Unexplained cash credit - loan amount availed by the assessee from the sister concern - HELD THAT - From the materials on record, CIT (Appeals) and Tribunal both had come to the conclusion that the assessee had produced the copy of PAN card, address confirmation, copy of the return and the bank statements of the payee for the present assessment year as well as in the earlier assessment year where such an issue had cropped up. Essentially, Commissioner of Income Tax (Appeals) as well as the Tribunal held that the assessee established the genuineness of transaction, creditworthiness of payee and the source of the payment. The issue hinges on appreciation of material on record. No question of law arises.

Summary

Issues:
- Appeal by Revenue against ITAT judgment
- Addition of unexplained cash credit in assessment year 2010-11
- Dispute over loan amount from sister concern
- Deletion of addition by Commissioner of Income Tax (Appeals)
- Confirmation of deletion by Tribunal
- Production of evidence by assessee
- Establishment of genuineness of transaction, creditworthiness of payee, and payment source

Analysis:
The case involves an appeal by the Revenue against a judgment of the Income Tax Appellate Tribunal (ITAT) concerning the addition of unexplained cash credit in the assessment year 2010-11. The Assessing Officer had made an addition of Rs.50,86,007, which included a loan amount from a sister concern that the assessee disputed. The Commissioner of Income Tax (Appeals) deleted the addition, leading the Revenue to approach the Tribunal. The Tribunal upheld the Commissioner's decision, citing a previous order in the assessee's favor for a different assessment year.

Both the Commissioner of Income Tax (Appeals) and the Tribunal concluded that the assessee provided sufficient evidence, including PAN card, address confirmation, return copy, and bank statements of the payee, to establish the genuineness of the transaction, creditworthiness of the payee, and the source of payment. The Tribunal noted that the evidence presented in the current assessment year was similar to that in the previous year, where the issue had also arisen. Consequently, the Tribunal found no reason to deviate from its earlier decision and declined the Revenue's grounds for appeal.

In light of the evidence presented and the consistent findings of both the Commissioner of Income Tax (Appeals) and the Tribunal regarding the genuineness of the transaction and the credibility of the payee, the issue primarily revolves around the assessment and appreciation of the material on record. The courts concluded that no question of law arose in this case, leading to the dismissal of the Tax Appeal.