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TMI Blog2020 (3) TMI 340X X X X Extracts X X X X X X X X Extracts X X X X ..... uineness of the transaction had discharged its burden and it was for the revenue to conduct an enquiry and to prove that the transaction in question was not genuine and the identity of the creditor was not established and it had no credit worthiness. In the instant case, the revenue has not conducted any enquiry and has failed to discharge its burden. We answer the substantial question of law in favour of the assessee and against the revenue. - I.T.A. NO.255 OF 2010 - - - Dated:- 31-1-2020 - MR. ALOK ARADHE AND MR. RAVI V.HOSMANI JJ. APPELLANT (By Sri. A. SHANKAR, SR. COUNSEL FOR Sri. M. LAVA, ADV.) RESPONDENT (By Sri. K.V. ARAVIND, ADV.) JUDGMENT ALOK ARADHE J. This appeal under Section 260A of the Income T ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r assessment year 2005-06 and declared the total income of ₹ 38,11,543/-. The return filed by the appellant was selected for scrutiny and a notice under Section 143(2) of the Act was issued. According to the assessee, it received a sum of ₹ 55 Lakhs by way of cash from M/s Bhuwania Bros. Pvt. Ltd. Calcutta on various dates against a proposed contract for sale. However, the sale could not be finalized on account of some reasons. The aforesaid amounts were paid to M/s Bhuwania Bros. Pvt. Ltd., and the accounts of M/s.Bhuwania Bros. Pvt. Ltd., also showed the repayment of the said amount. However, the Assessing Officer by an order dated 31.12.2017, rejected the explanation furnished by the assessee and made an addition of ₹ 5 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... her submitted that the addition made by the Assessing Officer is not in accordance with Section 68 of the Act as there is no concept of undisclosed income. It is further submitted that the Commissioner of R Shivappa, V Lokeshmurthy, P Narasimha Swamy, R Kiran and B.S. Manjunath Tax (Appeals) by considering the remand before the Assessing Officer rightly held that the appellant had proved the identity and credit worthiness. It is submitted that the tribunal grossly erred in holding that summons issued to M/s Bhuwania Bros. Pvt. Ltd. were not complied with as balance sheet and confirmation letter was filed. It is also urged that the tribunal ignored the material evidence on record and erred in holding that the entries in the assessee s books ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ya Pradesh in ITRNo.22/2018 decided on 07.08.2018. It is further submitted that the similar issue was dealt with the division bench of Madhya Pradesh High Court and the aforesaid decision has been upheld by Supreme Court vide order dated 18,.02.2019 in SLP (civil diary) No.1992/2019. 6. We have considered the submissions made on both the sides and have perused the record. The Supreme Court in the case of DAULAT RAM RAWATMULL supra has held that a person could still be held to be the owner of a sum of money even though the explanation furnished by him regarding the source of that money was found to be not correct. It has further been held that onus of proving that the transaction was not the genuine transaction is on the party who claims ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... saction had discharged its burden and it was for the revenue to conduct an enquiry and to prove that the transaction in question was not genuine and the identity of the creditor was not established and it had no credit worthiness. In the instant case, the revenue has not conducted any enquiry and has failed to discharge its burden. In view of preceding analysis, we answer the substantial question of law Nos.(i), (ii) and (iii) in the negative and in favour of the asssessee and against the revenue. 8. So far as reliance placed by learned counsel for the revenue in case of NRA IRON STEEL LTD. SUPRA is concerned, suffice to say that the aforesaid decision interprets amended Section 68, by which a proviso has been added with effect from 01.0 ..... X X X X Extracts X X X X X X X X Extracts X X X X
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