2017 (7) TMI 957

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....149(Asr)/2016, claiming following substantial questions of law for the assessment year 2009-10:- (i) "Whether on the facts and circumstances of the case and in law, Hon'ble ITAT has erred in allowing relief to the assessee while not appreciating the fact that the provisions of Section 68 of the Income Tax Act, 1961 were rightly attracted in this case since the assessee failed to prove identity, capacity, creditworthiness and genuineness of the creditors? (ii) Whether on the facts and circumstances of the case and in law, Hon'ble ITAT was right in not following its own decision in the case of Shiv Rice & General Mills in ITA No.468(ASR)/2001 dated 13.01.2006, which squarely covers the case of the revenue and also goes to th....

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....xceeding Rs. 50,000/- was outstanding as on 31.03.2009. Summons under Section 131 of the Act were issued randomly on 21.11.2011 to find out the genuineness of creditors in respect of outstanding payments as on 31.03.2009, which were reflected against registration numbers of vehicles. All the summons were received back un-served with the remarks that "no such person available at this address", "address is incomplete". The assessee was asked to furnish ledger account of the aforesaid creditors, which were produced by him. It was found that credit entries in respect of all the vehicles had been made on account of freight, octroi and carriage. These entries had been made in the last days of March, 2009. A few entries pertained to the months of ....

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....a road Contractor received material for the construction of the road. The amounts in question represented purchases made on credits. According to Section 68 of the Act, where any sum is found credited in the books of account of an assessee maintained for any previous year and the asseessee offers no explanation about the nature and source of the same or the explanation offered by him is not satisfactory in the opinion of the Assessing Officer, the sum so credited may be charged to income tax as the income of the assessee of that previous year. It has been categorically recorded by the Tribunal that the provisions of Section 68 of the Act were clearly not attracted to the amount representing purchases made on credits. Further the trade credi....