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TMI Blog2018 (10) TMI 1513X X X X Extracts X X X X X X X X Extracts X X X X ..... inally the genuineness of the transaction with him. All this has not been examined and yet, relying upon a subsequent development, namely of repayment of the amounts borrowed, the assessee has been let off. The Tribunal has dismissed the appeal by not examining fulfillment of essential ingredients of section 68 of the Income Tax Act, 1961. It has also not endorsed the finding of fact rendered by the Commissioner. In appealing against the order of the Tribunal and submitting that the questions proposed are substantial questions of law, Mr. Mohanty invited our attention to paragraph 7 of the impugned order. 3. We are unable to agree with Mr. Mohanty and for more than one reason. The Assessment Year in question is 2008-09. In the assessment o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... unds of decision, copy of which is at Exhibit-C of the paper-book, the First Appellate Authority found that the entire record was before the Assessing Officer. The assessee is a builder and developer. The assessee- firm derives income from this business. An advance of Rs. 23 crores was taken from M/s. Akshata Mercantile Private Limited. Out of this Rs. 23 crores, a sum of Rs. 13 crores has been directly paid by the company and the source thereof was satisfactorily explained, as held by the Assessing Officer. The balance amount of Rs. 10 crores was paid by M/s. Maheep Marketing Private Limited on behalf of the said M/s. Akshata Mercantile Private Limited. A summons was issued during the course of the assessment proceedings to the said M/s. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r in doubt, more so, when the source of the credit was explained being money received from M/s. Maheep Marketing P. Ltd. whose confirmation was also filed during the course of assessment proceedings. Now an affidavit of the Director of M/s. Maheep Marketing P. Ltd. giving full particulars of date of incorporation, PAN etc. has also been filed. It has also been stated in the affidavit of M/s. AMPL that the advance of Rs. 23 cr. (Rs.13 cr. paid directly by M/s. AMPL and Rs. 10 cr. by M/s. Maheep Marketing P. Ltd. on behalf of M/s. AMPL) was paid to the appellant as advance for purchasing and acquiring 50000 sq. ft. of property for a lumpsum consideration of Rs. 100 cr. and that M/s. Maheep Marketing P. Ltd. had advanced a sum of Rs. 10 crores ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r was not required to be reproduced by the Tribunal. The Tribunal found that the Commissioner's order cannot be faulted for he applied the correct legal principles that were applicable to the facts and circumstances of the assessee's case. In addition, there is a subsequent development and namely that each of these creditors from whom the assessee borrowed moneys or who advanced it the moneys, were repaid the sums borrowed. This would establish that there were indeed real creditors; that they had indeed the funds available with them and that the transactions were genuine. In the circumstances, the finding of fact by the Commissioner was endorsed by the Tribunal. Instead of endorsing it fully and dismissing the Revenue's appeal i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... manner in which the sums were found credited in the books of account maintained by the assessee may be taken into consideration, according to Mr. Mohanty, but that was not enough. Even the money being paid by cheques is of no consequence according to Mr. Mohanty. It may be so, but when these principles are invoked, their application would depend upon the facts and circumstances in each case. There, the Hon'ble Supreme Court endorsed the findings and dismissed the Revenue's Appeal. While relying upon paragraph 26 of this judgment in P. Mohanakala (supra) what Mr. Mohanty submits is that in that paragraph the Hon'ble Supreme Court was referring to its prior decisions. The reliance thereon was to the extent of the Revenue's su ..... X X X X Extracts X X X X X X X X Extracts X X X X
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