2018 (12) TMI 38

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..... the payment of 18.00 lakhs towards the first instalment of the license fee and therefore, such an amount cannot be treated as unexplained income from the business of the assessee. This is the capital introduced by him and if at all, it can only be the income from the earlier years and not from the relevant previous year. Therefore, respectfully following the judgment of the Hon'ble Supreme Court in BHARAT ENGINEERING AND CONSTRUCTION CO. [1971 (9) TMI 14 - SUPREME COURT], we delete the addition of 18.00 lakhs. - Decided partly in favour of assessee.
Smt. P. Madhavi Devi, Judicial Member And Shri S.Rifaur Rahman, Accountant Member For the Assessee : Shri S. Rama Rao For the Revenue : Smt. V. Rajitha & Shri K. Ravi Kumar, DR ORDER PER .....

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..... ses of the assessee on 25.03.2010, during the course of which, the assessee gave a statement that the initial investment in the business is ₹ 18.00 lakhs towards the first instalment of license fee and lifting of stock from the Beverage Corporation and sources for such investment is from agricultural operations of the family. The assessee was asked to furnish the details of the land holdings along with the details of the crops produced, proof of sale of the agricultural produce etc., The assessee could not produce the relevant details, but ultimately on 11.10.2011, the assessee produced the books of account and copies of the agricultural land holdings, cash flow statement from 1996-97 to 2008-09. The assessee submitted that the capita .....

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..... he assessee placed reliance on the judgment of the Hon'ble Supreme Court of India in the case of CIT vs. Bharat Engg. & Construction Co. reported in (1972) 83 ITR 0187 wherein the Hon'ble Supreme Court held that the unexplained cash credit entries in the first year of its business represents capital receipts and could not be its income. 5. The learned DR, on the other hand, supported the orders of the AO and placed reliance upon the decision of the Coordinate Bench of this Tribunal in the case of ACIT vs. M/s. Pennar Aqua Exports Pvt. Ltd in ITA No.1946/Hyd/2011 for the A.Y 1994-95 wherein the Coordinate Bench of this Tribunal has held that the assessee fails to prove the genuineness and creditworthiness of persons making cash cred .....

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