×Latest Case Laws on Income Tax by various High Courts of India
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29-01-2019, Rajnikatn And Company, Section 68, 131, HIGH COURT OF ALLAHABAD
The present appeal has been filed against the judgment & order dated 08.03.2013 passed by the Income Tax Appellate Tribunal, Agra Bench, Agra (hereinafter referred to as, 'the Tribunal') in Income Tax Appeal No. 246/Agr./2012 for the Assessment Year 2007-08.
The present appeal was admitted by this Court on 03.10.2018 on the following questions of law:-
“(i) Whether on the facts and circumstances of the case, the ITAT while deciding the appeal was right in not considering with due care all the materials facts and record its finding on the contention raised by the appellant in light of the evidences adduced, its order does not suffer from manifest infirmity?
(ii) Whether the ITAT was right confirming addition of Rs. 4,00,000/- towards advances and Rs. 3,00,000/- towards loan totalling Rs. 7,00,000/- under section 68 of the Act, when the onus was discharge by the appellant by submitting conformity letters, indentity and credit worthiness of the creditors before the A.O., who had not made any further enquiry nor served notice under section 131 of the Act?”
The facts of the case are that the assessee – applicant is a Proprietor of M/s Rajnikant & Company and engaged in the business of silver ornaments, bullion and job work . The appellant filed its return showing an income of Rs. 1,14,875/-.
The case of the applicant was selected for scrutiny and notices were issued under section 143(2) of the Income Tax Act, 1961.
In response thereto, a detailed reply was filed and hearing was afforded to the applicant's authorized representative.
The Assessing Authority, during the course of the scrutiny proceeding, noticed cash credit entries in the Book, which are as under:-
I. Advances of purchase of silver ornaments from following parties:-
(a) Ambrish Bhai Soni - Rs. 2,00,000/-
(b) Krishna Verma - Rs. 1,00,000/-
(c) Kuldeep Kumar Soni - Rs. 1,00,000/-
II. Loan and deposits:-
(a) Narayan Das - Rs. 2,00,000/-
(b) Nitin Kumar Verma - Rs. 1,00,000/-
The Assessing Authority has found that the appellant could not explain the genuineness of the transactions and credit