S. 68 Merely transfer through bank account does not prove that the money is explained

Deletion of addition under section 68 for unexplained credits without examining creditworthiness of the persons or genuineness of the transactions for the mere fact that credit were made through Banking channels not justified.

Transaction through bank is not sufficient as per the ratio laid down in the case of CIT Vs. Precision Finance Pvt. Ltd, 208 ITR 465 Cal. Merely because the money is transferred through the bank account does not prove that the money is explained. The appellate authorities have not examined the creditworthiness of the persons or genuineness of the transactions. In the instant case, the remand report was not considered. Hence, the facts are not clear in the case. When it is so, then in the interest of justice we deem it fit to restore the matter back to the Tribunal to examine the matter afresh.

High Court of Allahabad

Commissioner Of Income Tax

V/s..

Smt. Prem Lata Sethi

INCOME TAX APPEAL No. – 36 of 2009

Assessment Year 2004- 05

Order Date:- 25th Oct., 2013

Hon’ble Rajiv Sharma,J.  Hon’ble Dr. Satish Chandra,J.

(Delivered by Hon. Dr. Satish Chandra, J)

The present appeal has been filed by the appellant-Department under Section 260A of the Income-tax Act, 1961, against the judgment and order dated 28.11.2008, passed by the Income Tax Appellate Tribunal, Lucknow in I.T.A. No. 561/luc/2008, for the assessment year 2004-05.