Case Law Details
DECIDED BY: HIGH COURT OF DELHI, IN THE CASE OF: CIT Vs. Kishori Lal Construction Ltd., APPEAL NO: ITA 783/2007, DECIDED ON December 23, 2009
JUDGMENT
A.K. SIKRI, J.
1. By the impugned order, learned Income Tax Appellate Tribunal (ITAT) has affirmed the order of the Commissioner of Income Tax(Appeals) [CIT(A)] deleting the addition of Rs.49,41,030/- made by the Assessing Officer under Section 68 of the Income Tax Act (hereinafter referred to as Act?) on account of unexplained cash credit. This amount was received by the assessee from one M/s Yadav and Company and according to the Tribunal the basis for making this addition was clearly erroneous.
2. The assessee is a company engaged in the business of purchase and sale of iron and steel as well as that of purchase and sale of shares. It filed return of income for the assessment year 2000-01, which was accepted under Section 143(1) of the Act. Thereafter, however, a notice under Section 148 of the Act was issued to the respondent-assessee on 24th March, 2003. It was stated that the assessee had sold certain shares to M/s Yadav and Company during the financial year ending on 31st March, 1999. A sum of Rs.49,41,030/- was payable by M/s Yadav and Company as on 31st March, 1999, on this account. This amount was paid in the year in question by cheques drawn on Union Bank of India. The search and seizure operation was conducted in the premises of M/s Yadav and Company in March, 2002. On 7th March, 2002 statement of Sh. Mohinder Singh Yadav and Sh. O.P. Yadav of M/s Yadav and Company was recorded under Section 132(4) of the Act. In this statement Sh. Mohinder Singh Yadav denied having any account in Union Bank of India, Moti Bagh Branch. This was the reason for opening the assessment by issuing notice under Section 148 of the Act. The Assessing Officer treated the receipt of aforesaid consideration as sham and bogus in view of the statement of Mr. Mohinder Singh Yadav that M/s Yadav and Company had no such account with Union Bank of India, Moti Bagh Branch. According to the Assessing Officer the assessee had introduced his own unaccounted cash through the above transactions. The Assessing Officer, therefore, concluded that this receipt was to be treated as unexplained cash credit and made the addition under Section 68 of the Act.
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