Case Law Details
In view of above, following the judgment of Hon’ble Guwahati High Court in the case of Nemi Chand Kothari (supra) and the judgment of Madhya Pradesh high Court in the case of Metachem Industries (supra), we hold that the AO and the CIT(A) did not make any effort to verify the confirmations, identity and creditworthiness of the creditors in question and they also ignored the fact that the transaction of cash credits received and its repayment were made through bank and we also hold that the authorities below did not bring any incriminating material or evidence against the assessee trust to establish that the amount shown in the balance sheet as cash credits amounting to Rs.1,70,000 actually belonged or was owned by the assessee trust itself.
Accordingly, we arrive to a conclusion that the addition of Rs.1,70,000 u/s 68 of the Act confirmed by the CIT(A) is not sustainable in the facts and circumstances of the case. We, therefore, allow the appeal of the assessee trust, setting aside the orders of the authorities below in this regard.
INCOME TAX APPELLATE TRIBUNAL, DELHI
I.T.A.No.723/Del/2012 – Assessment Year: 2005-06
The Gurukul Trust Vs. ADIT (E) Please become a Premium member. If you are already a Premium member, login here to access the full content.
