[aaykarbhavan] All hc deletes addition on creditors as three ingredients of cash credit have been established,

eLegalix - Allahabad High Court Judgment Information System (Judgment/Order in Text Format)

---

This is an UNCERTIFIED copy for information/reference. For authentic copy please refer to certified copy only. In case of any mistake, please bring it to the notice of Deputy Registrar(Copying).

HIGH COURT OF JUDICATURE AT ALLAHABAD

?Court No. - 33
Case :- INCOME TAX APPEAL No. - 330 of 2009
(ASSESSMENT YEAR 2003-04)
Appellant :- Commissioner Of Income Tax
Respondent :- Shri Kulbir Singh
Counsel for Appellant :- S.C.

Hon'ble Tarun Agarwala,J.
Hon'ble Dr. Satish Chandra,J.
The present appeal has been filed by the Department under Section 260A of the Income Tax Act, 1961 against the judgement and order dated 05.01.2009 passed by the Income Tax Appellate Tribunal, Agra in I.T.A No. 48/Agr./2007 for the assessment year 2003-04.
The brief facts of the case are that during the assessment year under consideration, the assessee was engaged in the business of manufacturing and export of shoes. It was 100% export oriented undertaking and enjoying the relief under Section 80HHC.
While making the scrutiny under Section 143(3) of the Act, the A.O. observed that the assessee has taken the cash credit to the tune of Rs. 17,50,000/- from eight creditors. After examining the material, the A.O. has treated the cash credit as genuine. However, the CIT was not satisfied, so he passed an order under Section 263 of the Act and directed the A.O. to re-examine the transactions pertaining to the cash credit by setting aside the assessment order. Being aggrieved, the assessee approached the Tribunal.
.
The Tribunal, again examined the material pertaining to the cash credit. But there was difference of opinion between the members. So, the dispute was referred to the Third Member. Finally, with the majority decision, the Tribunal observed that the transaction pertaining to the cash credit was genuine, so the original assessment order was upheld. Not being satisfied, the department has knocked the door of this Court by filing the present appeal.
With this background, we heard at length the learned counsel for the department and the learned counsel for the assessee and gone through the material available on record.
After hearing both the parties, it appears that the A.O. has passed the assessment order under Section 143(3) of the Act, after examining the entire material.� The issue relating to the cash credit was also examined by the Tribunal, who observed that the assessee had filed the confirmation list from the creditors, all the creditors are assessed to tax.� The money was paid through account payee cheque.
In view of the above, the identity of the creditor is established when the confirmation has been filed in each case.� The payment was made through account payee cheque, so the transaction is genuine. The creditors were the income tax assessees and they have shown the said amount in their accounts.� Thus, creditworthiness has been proved. All the three ingredients of cash credit have been established, when it is so, then we find no reason to interfere with the impugned order passed by the Tribunal. No substantial question of law is arising from the impugned order.
Hence, the appeal filed by the department is dismissed at the admission stage.
Order Date :- 8.5.2014/-Anurag/-
.
(Dr. Satish Chandra, J) �� (Tarun Agarwala, J)

 

---

Visit http://elegalix.allahabadhighcourt.in/elegalix/StartWebSearch.do for more Judgments/Orders delivered at Allahabad High Court and Its Bench at Lucknow. Disclaimer

 

Regards

Prarthana Jalan

__._,_.___

receive alert on mobile, subscribe to SMS Channel named "aaykarbhavan"
[COST FREE]
SEND "on aaykarbhavan" TO 9870807070 FROM YOUR MOBILE.

To receive the mails from this group send message to aaykarbhavan-subscribe@yahoogroups.com

Visit Your Group

• New Members 1

• Privacy • Unsubscribe • Terms of Use