2011 (11) TMI 654

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.... JUDGMENT : The present appeal is filed by the revenue under Section 260A of the Income Tax Act, 1961 (hereinafter referred to as "the Act") against order dated 18.10.2010 passed in ITA No.983/CHANDI/2010 for the assessment year 2007-08 by the Income Tax Appellate Tribunal, Chandigarh Bench 'B', Chandigarh. The revenue has contended that the following substantial questions of law arise ....

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....as credits in the account of assessee firm introduced by the creditors (earned as commodity profits) actually belonged to the assessee firm and, therefore, the same cannot be treated as unexplained under Section 68?" The department is aggrieved that in appeal the Commissioner of Income Tax (Appeals) has deleted the addition of Rs. 33,11,510/- and the said order has been upheld by the Tribunal. It ....

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...., come on record that the creditors are existing income tax payees, who have filed their returns showing the mode of advance and their sources and such affairs have been accepted by their respective Assessing Officers. Learned counsel for the revenue has urged that the credit worthiness and genuineness of the transactions have been doubted and the assessee could not explain the source of the cr....