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TMI Blog2015 (4) TMI 1236X X X X Extracts X X X X X X X X Extracts X X X X ..... /- before set-off of unabsorbed losses/depreciation. In the course of scrutiny proceedings, Assessing Officer [AO] noticed that assessee has received Rs. 15 Crores as share application money during the year. AO wrongly noted that this amount was received from M/s. Lanco Infratech Pvt. Ltd., whereas the amount was received from one of the directors Shri L. Sridhar. AO further noted that assessee-company has invested the same in M/s. Jubilee Media Communications (P) Ltd. He noticed that the said company has further invested the amount in M/s. Jagathi Publications Ltd. He also states that a similar transaction was involved in previous year relevant to AY.2008-09 wherein Rs. 20 Crores was received from M/s. Lanco Infratech Pvt. Ltd., which in t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... money against which shares were allotted to the company on 01-03-2011. As a part of company's investment strategy, it was decided to route the investment through a company so that all media related investments can be channeled through one company so as to have flexibility in the matter at the time of dis-investment or restructuring of the investments made. Further, it was submitted to the CIT(A) that there is no case against M/s. Jubilee Media Communications (P) Ltd. by CBI and filed certain evidence in support. It was further contended that AO has not brought anything on record to substantiate that unaccounted income of assessee was routed. There were other objections also by assessee on the order of the AO with which we are not conce ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... stood explained. iii) As per the provisions of section 68, where any sum of money is found credited in the books during a previous year and the assessee fails to offer an explanation about the nature and source of thereof or the explanation of the assessee is found not satisfactory, the Assessing officer can treat the amount as unexplained cash credit and deem the amount as income of the assessee for the previous year. As mentioned above, the flow of fund has been satisfactorily explained by the appellant and Assessing officer has no allegation or doubt about the nature and source of the said amount of Rs. 15 crores. There is no whisper in the assessment order that the appellant-company has failed to explain the sources of investment or ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... me-tax [1966] 59 ITR 562 SC, that the Income-tax Officer is, within the limits assigned to him under the Act, a Tribunal of exclusive jurisdiction for purposes of assessment and he has, under the Act, to decide whether a particular receipt is 11 income 11 or not. It is equally beyond doubt that a statutory authority is bound to hold statutory inquiry and perform statutory duties and such authorities could never be precluded from discharging statutory functions. Therefore, he should not have been influenced by the fact that some enquiry is launched by some other authority, the outcome of which was not known. The Assessing Officer is not required to travel in an unknown territory which has no sanction in law, ignoring a statutory provision an ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hat the credit is un-explained. There is no such finding either in the assessment order or in the Remand Reports. Moreover, just because another Government authority is investigating the fund flow, it cannot be conclude that the funds received by assesseecompany are un-explained. Therefore, considering the facts of the case and the findings by the CIT(A), we do not see any reason to interfere with the order. However, this finding is only with reference to the provisions of the Act and should not come in the way of CBI investigating the various sources of funds and Revenue is free to take necessary action in case the funds are found to be un-explained. 5. With these observations, Revenue's appeal is dismissed. Order pronounced in open ..... X X X X Extracts X X X X X X X X Extracts X X X X
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