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TMI Blog2022 (5) TMI 177X X X X Extracts X X X X X X X X Extracts X X X X ..... 'BLE MR. JUSTICE MANMOHAN AND HON'BLE MR. JUSTICE DINESH KUMAR SHARMA Appellant Through: Mr. Ruchir Bhatia, Advocate Respondent Through: None J U D G M E N T DINESH KUMAR SHARMA, J. (Oral) 1. The present appeal has been filed challenging the order dated 10.01.2019 passed by Income Tax Appellate Tribunal (ITAT), Bench E New Delhi in ITA No.6126/DEL/2014 and Co No.165/DEL/2015 in ITA No.6126/DEL/2014 for Assessment Year 2008-09. 2. The appellant has stated that the assessee has filed return of income for assessment year 2008-09 declaring an income of Rs.2,82,271/- under Section 139 (1) of the Income Tax Act, 1961 (hereinafter referred to as the Act ) 3. On 28.09.2010, search and seizure operation unde ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ee on the issue of addition of Rs.5,01,90,000/-. The CIT (A) has held that the source of credit to the extent of Rs.43,62,500/- comprising of sums received from Mittal Tin container (Rs.41,00,000/-) and Vivek Commodities (Rs.2,62,500/-) was confirmed and the source of balance of Rs.4,58,27,500/- was considered to have been explained. 7. The revenue preferred an appeal before the ITAT against the order of the CIT (A). The ITAT confirmed the order of the CIT (A) and the appeal of the department was dismissed. 8. The department in the present appeal has only challenged the order of ITAT deleting the addition of Rs.4,63,18,300/- (on account of unexplained cash credit and income from undisclosed sources). 9. The department has challenge ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ould not produce any formal corroborative evidence of having received respective amounts to corroborate the cash flow statement. Mr. Bhatia further stated that ITAT has wrongly relied upon the cash flow statement and report of DIT (systems). 13. It has further been stated that the CIT (A) could not have partaken the role of the Assessing officer and satisfy itself regarding the genuineness and creditworthiness of the parties. Mr. Bhatia has further stated that the ITAT has also failed to appreciate the real intent of Section 68 of the Act. 14. We have considered the submissions of Mr. Ruchir Bhatia. 15. The scope of jurisdiction in Section 260A is very well settled. It is a settled proposition that ITAT is the final arbiter of the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s the opening cash in hand, the assessee received Rs.2.05 crores from M/s Vivek Commodities, Rs.2.65 crores from M/s Mittal Tin Container Industry, Rs.1,30,500/- from M/s Triveni Infrastructure Development Company Ltd. (TIDCO) and Rs.75 lacs from M/s Triveni Motors. Out of the four entities, the assessee is the promoter director of TIDCO and Triveni Motors, which entities are assessed by the very same AO having PAN AACCT3870A and AACFT0256B. Further, learned CIT (A) on a perusal of the financial accounts of TIDCO and Triveni Motors noticed that the TIDCO had shareholders fund of Rs.46.57 crores and loan funds to the tune of Rs.47.04 crore and Triveni Motors had a capital of Rs.2.89 crores and loan funds of Rs.5.35 crores. He, therefore, hel ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... milarly, M/s Mittal Infrastructure Tin Containers Ltd. with 20 partners raised a capital of Rs.2.64 crores during the year and paid a sum of Rs.2.65 crores to the assessee for purchase of shares. On this, learned CIT (A) directed the assessee to prove the identity and creditworthiness of all the partners of these entities, in response to which the assessee submitted copies of return of income, computation sheet and balance sheet for each of the partners. Since these documents were submitted before the learned CIT (A) and were not available before the learned AO, learned CIT (A) transmitted the documents to the learned AO calling upon him to submit the report. Learned CIT (A) recorded that in spite of three reminders, there was no response f ..... X X X X Extracts X X X X X X X X Extracts X X X X
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