2012 (5) TMI 163

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....ircumstances of the case, the Hon'ble ITAT have been legally correct in deleting and addition of Rs.5,23,598/- by holding that the entries for investment in the bank drafts were properly recorded in the books of account of the assessee firm and stand proved, particularly when no such books of account had ever been produced before any Income-tax Authority for verification?" This is an appeal filed by the Revenue against the judgment and order of the Income Tax Appellate Tribunal. The Income Tax Appellate Tribunal has deleted the addition of Rs.5,23,596/- holding that the entries for investment in the bank draft were properly recorded in the books of account of the assessee firm and stand proved. The assessee has been dealing in coal....

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.... of account of the assessee firm and assessee has also proved the source of investment. The Tribunal disagreed with the Assessing Officer as well as the Appellate Authority. The findings which have been returned in paragraph-5 are to the following effect:- "5. The addition of Rs.5,23,596/- has been made u/s. 69 of the I.T. Act. The condition laid-down u/s. 69 is that if any books of account is maintained by any assessee and in the said books, the investment has not been reflected and the assessee offers no explanation about the nature and source of the investment, the A.O. may deem to be the income of the assessee of that assessment year. In this case, we noted that the Inspectors, who carried out survey u/s. 132 on 01 Aug. 90 found t....

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.... for the appellant challenging the order of the Appellate Tribunal contended that there was valid reason for Assessing Officer in not accepting the explanation submitted by the assessee regarding the source of the aforesaid amount in investment of bank drafts. He submits that no railway tickets for journey, hotel bills etc. have been produced which had thrown great doubt regarding the whole story which was set up by the assessee. We have considered the submission of learned counsel for the appellant and has perused the record. Admittedly, the bank drafts were prepared from the branch of a bank at Kohima. The assessee's clear case was that he took Rs.5,50,000/- in cash from Ferozabad for journey for purchase of coal. The preparation....