Brief of the Case
ITAT Ahmedabad held In the case of Mahalaxmi Housing & Finstock Pvt. Ltd. vs. ACIT that the assessee has filed PANs, addresses, etc. for demonstrating that the depositors were assessed to tax. Hon’ble Jurisdictional High Court in the case of CIT vs. Dharamdev Finance (P.) Ltd. reported at (2014) 51 taxmann.com 205 (Guj.): (2014) 227 Taxman 219 held that no addition on account of cash credits be made, where assessee had given PAN of creditors, their confirmation and their bank statement which established their creditability. By following the same judgment, direction issued to AO to delete the addition.
Facts of the Case
A search action was carried out in the case of Neptune Group of Cases by the ITO Investigations. Subsequently, the assessment u/s.153A (1) (b) r.w.s.144 was framed vie order dated 31/12/2008. While framing the assessment, the AO made addition on account of unexplained cash credit amounting to Rs.17,87,000/-.
Contention of the Assessee
The ld counsel of the assessee submitted that the assessee had furnished PANs, addresses, etc. to prove the identity, genuineness of the transaction and creditworthiness of the depositors.
Held by CIT (A)
CIT (A) partly allowed the appeal of the assessee. CIT (A) directed the AO to verify the facts in case the facts are found to be correct, then the addition to be restricted to Rs.1 lac.
Held by ITAT
ITAT held that the assessee has filed PANs, addresses, etc. for demonstrating that the depositors were assessed to tax. Hon’ble Jurisdictional High Court in the case of CIT vs. Dharamdev Finance (P.) Ltd. reported at (2014) 51 taxmann.com 205 (Guj.): (2014) 227 Taxman 219 held that no addition on account of cash credits be made, where assessee had given PAN of creditors, their confirmation and their bank statement which established their creditability. By following the same judgment, direction issued to AO to delete the addition.
Accordingly appeal of the assessee allowed.
