2016 (12) TMI 618

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....is right in law and on facts of the case in confirming the order of the CIT(A) and thereby deleting the addition made by the A.O. on account of unexplained cash credits under section 69 of the Act of Rs. 50,61,60,657/-?" 2.00. Heard Mr. Nitin Mehta, learned counsel appearing on behalf of the appellant - revenue. 3.00. A.O. made addition of Rs. 56,61,60,657/- on account of unexplained cash credit under section 69 of the Act. However, after noticing that all the entries were explained in the Special Audit Report, the learned CIT(A) deleted the said addition by observing in para 6 as under :- "6. Decision : Now it is necessary to proceed the entire matter on merit. I have gone through the assessment order, detailed submission made by ....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....ty and creditworthiness of all the creditors and credits appearing on bank account. After verifying and satisfying themselves, the Auditors have finally given their opinion on Page 22 of the Report that income earned in the above 10 concerns / persons from mutual funds, share investment and other income, are of Rs. 68,55,384/-. Thus, all other bank entries and credits therein stand clearly explained and cannot be considered as unexplained. In view of this, the addition made of Rs. 56,61,60,657/- deserves to be deleted. 7. This is particularly so because the income of Rs. 68,55,384/- as suggested by Special Auditor also cannot be added and sustained inasmuch as the assessee has offered Rs. 72,00,000/- as its unexplained income before Sett....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....68,55,384/- as suggested by Special Auditor also could not be added and sustained inasmuch as the assessee had offered Rs. 72,00,000/- as its unexplained income before Settlement Commission. The Assessing Officer himself had accepted this fact and had excluded the income of Rs. 72,00,000/- as per the directions of Hon'ble High court. He agreed with the assessee that the income of Rs. 72,00,000/- inter-alia includes such income of Rs. 68,55,384/- suggested by the special auditor and therefore, there is no case and justification to make any separate addition in the income of Rs. 68,55,384/0. In view of this, the entire addition made by the Assessing Officer of Rs. 56,61,60,657/- was deleted. The Revenue could not rebut this finding of the CIT....