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TMI Blog2018 (7) TMI 1323X X X X Extracts X X X X X X X X Extracts X X X X ..... encashed and cheques were given by the family members to partners for amount of ₹ 1,09,00,000/-. A.O. after looking into the accounts of the assessee was satisfied by the explanation offered and we do not find any illegality in accounting entries made in the books of account of the assessee in respect of these transactions. Therefore, we affirm the order passed by the Tribunal. - Decided against revenue - Income Tax Appeal No. 259 of 2013 - - - Dated:- 13-7-2018 - Hon'ble Bharati Sapru And Hon'ble Dinesh Kumar Singh, JJ. For the Appellant : S.S.C. I.T.,Shubham Agrawal For the Respondent : Ashish Bansal,S.K. Garg,Satish Madhyan ORDER 1. Vide order dated 20th September, 2013 the present appeal was admitted ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed a reverse entry amounting to ₹ 55,00,000/-. Further in the case of partner, Sri Sunil Khetrapal ₹ 87,00,000/- had been introduced as capital through cheques on various dates. However, the cheques were never encashed, but the balance in the capital account had been inflated by the cheque amount and reverse entry had been passed for ₹ 74,69,000/- for amount deposited last year. The nature of these transactions were not very clear and, therefore, the assessee was asked to explain why the capital introduction not explained be not treated as unexplained cash credit to the extent of ₹ 83,00,000/- + ₹ 87,00,000/-, total ₹ 1,70,00,000/- for the Assessment Year (hereafter referred to as 'A.Y.') under co ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... accounts of partners Shri Anil Khetrapal and Shri Sunil Khetrapal the Commissioner also added credit of balance amount, namely, ₹ 59,00,000/- from Shabnam Khetrapal and ₹ 50,00,000/- from Benu Khetrapal on the ground that the source of amount of ₹ 1,09,00,000/- credited by the assessee in its books of account remained unexplained for which the assessee could not put forward any plausible explanation. 4. The income of the assessee was assessed to be ₹ 2,87,53,420/- and the A.O. was directed to issue demand notice and challan for the total revised assessed income after giving effect to the order passed by the C.I.T. and after computing interest payable by the assessee as per the provisions of the Act. 5. Aggrieve ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tu power under Section 263 of the Act. The Tribunal held that the assessee had duly explained the transactions regarding ₹ 1,70,00,000/- on account of partner's capital account with facts and figures by referring to various pages of paper book. The partners gave cheque which was not realized at the year end and, therefore, the entries were reversed. The Tribunal held that there was nothing wrong in such accounting entries. The relevant accounting entries itself showed the explanation of transaction and, therefore, the C.I.T. was not correct in saying that the assessee had failed to explain the transaction. 7. In regard to addition of sum of ₹ 1,09,00,000/- in respect of unsecured loan from Smt. Benu Khetrapal and Smt. Sha ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... into the accounts of the assessee was satisfied by the explanation offered and we do not find any illegality in accounting entries made in the books of account of the assessee in respect of these transactions. Therefore, we affirm the order passed by the Tribunal. 10. The Commissioner has to form an opinion with respect to two conditions on the material available on record to exercise power under Section 263 of the Act. We find that the sufficient material was not available to satisfy the two conditions for exercising power under Section 263 of the Act by the Commissioner and, therefore, the Tribunal was correct on this count also. We, thus, dismiss the appeal and affirm the order passed by the Tribunal. - - TaxTMI - TMITax - Income ..... X X X X Extracts X X X X X X X X Extracts X X X X
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