Once source is proved, it is not possible to treat deposits collected from public under provisions of Companies Act as unexplained credits

CASE LAWS DETAILS

DECIDED BY: ITAT, COCHIN BENCH, COCHIN,

IN THE CASE OF: The Mathrubhumi Printing & Publishing Co. Ltd. Vs DCIT, APPEAL NO: ITA Nos. 143 & 144/Coch/2006, DECIDED ON September 25, 2009

RELEVANT PARAGRAPH

10. There is no dispute on the fact that the assessee, a public limited company had accepted deposits from public as permitted by the Companies Act,1956 and following the rules and regulations provided thereunder. Even against constraints and the difficulty in tracing out the old records, the assessee company had placed before the assessing authority the relevant documentary support to prove the genuineness of the deposits collected from the public. The assessee company could produce such details before the assessing authority in respect of a lion’s share of the deposits collected from public. The assessee further produced evidences in respect of the remaining portion of the deposits before the CIT (Appeals) which were partially accepted. Regarding the remainder evidence, CIT (Appeals) I was not inclined to admit the details furnished by the assessee and that is why he has sustained part of the addition.

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