9911796707
TMI Blog2013 (9) TMI 975X X X X Extracts X X X X X X X X Extracts X X X X ..... he following substantial questions of law:- "Whether on the facts and in the circumstances of the case, and having regard to the provisions contained in Section 28(iv) and Section 68 of the Income Tax Act, the amount of advances received from persons, remaining unconfirmed and unverified, against allotment in future is liable to be taxed in the hands of the assessee as a benefit or perquisite, arising from business. Whether, on the facts and in the circumstances of the case, could the cash credit entires standing in the names of the partners in the account books of the firm be treated to be the income of the individual partner from undisclosed source or would it be the income of the firm." The brief facts of the case are that the assesse ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... where the addition was deleted. On the other hand, Sri Pradeep Agarwal, learned counsel for the assessee, at the strength of the written note, has justified the impugned order passed by the Tribunal. He submits that the Tribunal's finding that the credits were genuine and assessee has discharged its onus on the basis of the evidence and the department did not controvert it and thus no substantial question of law arises from the order of the Tribunal. He also submits that the test for determining whether a substantial question of law is involved in an appeal are : (i) Whether directly or indirectly it affects substantial rights of the parties; or (ii) the question is of general public important; or (iii) whether it is an open question in t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... them by the erstwhile firm. When the assessee-firm was dissolved, then the liability was taken ever by M/s. Dube Lands and Finance Ltd., managed by the erstwhile partners of the assessee-firm When it is so, then, the assessee-firm has not obtained any advantage or benefit from the earlier deals. To this effect, a certificate from M/s. Dube Lands and Finance Ltd., was produced before the appellant authority, where it was clearly mentioned that the said liability was taken over by them. The CIT(A) has asked the remand report and the AO by his reply dated 24.07.1997 has not pointed out that the certificate is not acceptable. In other words, the CIT(A) has deleted the addition after having the remand report from the AO. When it is so, then the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Ltd., has duly shown the amount in question in their books of accounts. When it is so, then we find no justification to make any addition. Similar position is regarding the addition of Rs.3,20,403/-, where the AO has confirmed the genuineness of the credit as per his remand report dated 24.02.1997. Thus, the CIT(A) has deleted the additions in all the cases after having the remand report from the AO. When it is so, then there is no reason to disagree with the order passed by the appellate authorities. The same are hereby sustained along with reasons mentioned therein. The answer to the substantial questions of law is in favour of the assessee and against the revenue. In the result, the appeal filed by the appellant-Department is hereby ..... X X X X Extracts X X X X X X X X Extracts X X X X
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