Case Law Details
Kruti Organisers P. Ltd. Vs ITO (ITAT Ahmedabad)
Section 68 of the Income Tax Act contemplates that where any sum is found credited in the books of an assessee maintained for any previous year, and the assessee offers no explanation about the nature and source thereof, or the explanation offered by the assessee is not, in the opinion of the AO satisfactory, then the sum so credited in the accounts may be treated as income of the assessee of that previous year. The question before me is, whether the assessee has satisfied conditions stipulated in section 68 of the Act or not in respect of cash credit availed from Navratna (Kaivanna) Owners Association of Rs.4,29,459/- and Rs.13,25,325/- from Navratna Organizers and Developers P.Ltd. Basically, the ld.Revenue authorities have denied the claim of the assessee on the ground that there were no sufficient evidences to prove the case of the assessee. It is the case of the assessee that all the details with regard to these loans were furnished before the lower authorities. The ld.counsel for the assessee took me to page no.25 of the PB wherein Balance sheet of assessee showing credit balance of the above two lenders has been shown at Rs.4,29,9459/- and Rs.13,25,325/- respectively. Details of accounts along with confirmation, addresses and PAN of the lenders have been furnished to the AO for verification. Even the assessee has furnished copy of assessment orders passed in the case of lender for the relevant year for verification. Apart from that, these funds have been received by the assessee through banking channel, and therefore, all the ingredients necessary for proving cash credit under section 68 has been satisfied by the assessee. In my view, looking to the details provided to the Revenue authorities and copies also available in the paper book, I am satisfied that the assessee has discharged burden put upon it by virtue of section 68 of the Income Tax Act, 1961. Therefore, I allow this ground of appeal and delete addition.
FULL TEXT OF THE ORDER OF ITAT AHMEDABAD
Assessee is in appeal before the Tribunal against order of the ld.CIT(A)-2, Ahmedabad dated 7.11.2016 passed for the Asstt.Year 2004-
05.
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