9911796707
TMI Blog2023 (12) TMI 342X X X X Extracts X X X X X X X X Extracts X X X X ..... dated 25.11.2022 passed by the Income Tax Appellate Tribunal, 'B' Bench, Chennai, in which, the following substantial questions of law have been raised : T.C.A.Nos.84 & 85 of 2023 : "(i) Whether on the facts and circumstances of the case, the Appellate Tribunal was right in law in confirming the addition under Section 68 of the Income Tax Act, 1961 especially when the sum credited in the bank account were accounted and explained from being out of the cash balance declared in the books of accounts and financials of the preceding assessment year? (ii) Whether on the facts and circumstances of the case, the Appellate Tribunal was right in law in failing to accord a reasonable opportunity to the appellant to substantiate, with docu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the case, the Appellate Tribunal was right in law in confirming the addition under Section 68 of the Income Tax Act, 1961 especially when the sum credited in the bank account were accounted and explained from being out of the cash balance declared in the books of accounts and financials of the preceding assessment year and consultancy income received during the relevant previous year? (ii) Whether on the facts and circumstances of the case, the Appellate Tribunal was right in law in failing to accord a reasonable opportunity to the appellant to substantiate, with documents and evidence, the source of the impugned investments inasmuch as they were out of cash balance available in the books of accounts and financials of the preceding asses ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f the preceding assessment years and consultancy income received during the relevant previous year? (iii) Whether the order of the Appellate Tribunal is perverse inasmuch as it proceeds on the presumption that the investments are made by the appellant in SBQ Steels Ltd., without considering that the investments are made in another entity i.e., Rai Ispat Private Limited, rendering the impugned order mechanical and perfunctory in violation of principles of natural justice? (iv) Whether on the facts and circumstances of the case, the Appellate Tribunal was right in law in invoking the provisions of Section 68 of the Income Tax Act, 1961 despite the additions falling under the nature of an 'investment'?" T.C.A.No.90 of 2023 : "(i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the cash balance declared in the books of accounts and financials of the preceding assessment year and consultancy income received during the relevant previous year? (ii) Whether on the facts and circumstances of the case, the Appellate Tribunal was right in law in failing to accord a reasonable opportunity to the appellant to substantiate, with documents and evidence, the source of the impugned investments inasmuch as they were out of cash balance available in the books of accounts and financials of the preceding assessment years and consultancy income received during the relevant previous year? (iii) Whether on the facts and circumstances of the case, the order of the Appellate Tribunal is perverse inasmuch as it failed to adhere to ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e transactions. For the assessment year 2013-2014, return of income was filed admitting a total income of Rs. 4,280/-. For the assessment year 2012-2013, return of income was filed admitting a total income of Rs. 31,480/-. 2.4. The appellant company in TCA No.129 of 2023 is engaged in the business of acquiring shares of other companies and holding it as investment besides engaging in hire purchase and lease transactions. For the assessment year 2013-2014, they filed return of income admitting a total income of Rs. 21,940/-. 2.5. While so, search action u/s.132 of the Act was carried out in the business place of the assessee viz., Chandan Credits Ltd., and its group companies on 26.09.2012, during which, it was noticed that the assessee ha ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ence, the appellants were not in a position to submit the documents. 4. The learned counsel for the appellants/assessees further submitted that the Tribunal has erred in confirming the addition under Section 68 of the Act, especially when the sum credited in the bank account were out of the cash balance declared in the books of accounts and financials of the earlier assessment year. The learned counsel also submitted that the respondent is questioning the source of investments in the share of SBQ Steels Ltd. and not the source of cash credited in the books of the appellants. Hence, the addition made under Section 68 of the Act is bad in law. Stating so, the learned counsel sought to quash the orders impugned herein. 5. Heard the learned s ..... X X X X Extracts X X X X X X X X Extracts X X X X
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