PCIT Vs Tulsyan And Sons Private Limited (Calcutta High Court)
The Revenue filed an appeal under Section 260A of the Income-tax Act, 1961 before the Calcutta High Court challenging the order of the ITAT Kolkata affirming the order of the Commissioner of Income Tax (Appeals) deleting an addition of Rs. 2,65,00,000 made under Section 68 of the Act.
The issue before the High Court was whether the Tribunal had erred in upholding the deletion of the addition made on account of alleged unexplained cash credit. The Assessing Officer had invoked Section 68 on the ground that the assessee had failed to establish the identity, creditworthiness and genuineness of the transactions relating to the amount received through the cash trail.
During the appellate proceedings, the CIT(A) called for a remand report from the Assessing Officer. In the remand report, the Assessing Officer accepted that the impugned amount represented sale proceeds of investments. After verifying the investments reflected in Schedule 4 of the balance sheet for the financial year 2010-11, the Assessing Officer recorded that the assessee had sold shares held as investments to M/s. Shivshakti Communications and Investment Pvt. Ltd. and Carnation Tradelink Pvt. Ltd., and that the receipt was not an unsecured loan.
