2013 (1) TMI 1060 - HC - Income Tax

Summary

Issues involved: Challenge to the order of the Income Tax Appellate Tribunal under section 260A of the Income Tax Act regarding deletion of addition of Rs.1,07,27,834 made by the Assessing Officer.

Summary:

1. The Revenue challenged the ITAT order regarding the deletion of the addition of Rs.1.07 crores made by the Assessing Officer, questioning the genuineness of credits. The Assessing Officer treated the amount as unexplained and unverifiable, leading to the addition to the assessee's income.

2. The CIT(A) deleted the entire addition after finding that payments were made by the assessee through Account Payee cheques and were credited in the bank accounts of the creditors. It emphasized that the bank details sufficiently proved the existence of creditors, and if the Assessing Officer was dissatisfied, further inquiry could have been made.

3. The Tribunal upheld the CIT(A)'s decision, noting that the Assessing Officer failed to show that the liability of the total sum had ceased to exist, making section 41(1) inapplicable. The Tribunal concurred with the evidence presented by the assessee and found no illegality in the orders.

4. The issue revolved around the factual matrix presented, with both the CIT(A) and the Tribunal basing their decisions on the evidence produced by the assessee. The Revenue could not demonstrate any perversity or illegality in the orders.

5. The High Court found no further merits in the issue and dismissed the Tax Appeal without elaboration.