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2023 (3) TMI 983 - AT - Income TaxUnexplained cash credits u/s 68 - transaction between assessee company and Mr. Devi Singh Rawat. unexplained - Whether assessee has duly discharged the burden by establishing identity creditworthiness and genuineness of the transaction? - HELD THAT - AO has not brought any evidence or materials to controvert the answers given by Mr. Devi Singh Rawat before the Assessing Officer on oath. We are of the view that transaction amounting to Rs.15, 00, 000/- between Mr. Devi Singh Rawat and the assessee company regarding sale of property by the assessee is explained satisfactorily and Revenue has failed to make a case for the aforesaid addition of Rs.15, 00, 000/-. Revenue has also failed to bring any evidence or any materials on record to disprove the testimony of Mr. Devi Singh Rawat given before the Assessing Officer on oath. In view of the foregoing we direct the Assessing Officer to delete the aforesaid addition of Rs.15, 00, 000/- in respect of transaction between assessee company and aforesaid Mr. Devi Singh Rawat.
Issues involved:
The appeal challenges the addition of Rs.43,00,000 as unexplained cash credits under section 68 of the Income Tax Act for Assessment Year 2012-13. Issue (A): The appeal challenges the addition of Rs.43,00,000 as unexplained cash credits under section 68 of the Act. The appellant contends that the burden of proof regarding identity, creditworthiness, and genuineness of the transaction has been met, making the addition illegal and untenable. The appellant argues that the source of the creditor not being explained cannot be a valid basis for the addition under section 68. Issue (B): The assessment order determined the appellant's total income at Rs.45,21,086, with additions made on amounts received from three individuals. The appellant appealed against the additions totaling Rs.43,00,000, which was dismissed by the Commissioner of Income Tax (Appeals). The issue regarding amounts received from two individuals, Mr. Bahl Singh and Mr. Maan Singh, was set aside for a fresh decision by the Assessing Officer after providing a reasonable opportunity to the assessee. Issue (C): Regarding the amount of Rs.15,00,000 received from Mr. Devi Singh Rawat, the appellant argued that Mr. Devi Singh satisfactorily answered all questions posed by the Assessing Officer and provided necessary explanations. The appellant highlighted the "Agreement to Sell," indicating the transfer of property to the nominee of the buyers, including Mr. Devi Singh Rawat. The Tribunal found the transaction explained satisfactorily, directing the Assessing Officer to delete the addition of Rs.15,00,000 in respect of the transaction between the appellant and Mr. Devi Singh Rawat. The Tribunal partly allowed the appeal, setting aside the addition of Rs.43,00,000 in relation to the amounts received from Mr. Bahl Singh and Mr. Maan Singh, and directing the deletion of the addition of Rs.15,00,000 in respect of the transaction with Mr. Devi Singh Rawat. All grounds of appeal were disposed of accordingly.
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