2017 (9) TMI 839

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....challenge the judgment of ITAT dated 7.3.2017 raising the following question for our consideration : "Whether on the facts and in the circumstances of the case, the Tribunal was right in law in restoring the order of the Assessing Officer and confirming the addition under section 69 of the Incometax Act, 1961? 4. The appeal concerns the assessment year 1996-1997. The assessee company had filed return of income declaring a loss of Rs. 9,919/. The return was taken in scrutiny by the Assessing Officer who passed the order of assessment determining the total income of the assessee at Rs. 46.92 lakhs (rounded off) making addition of the same sum under section 68 of the Income Tax Act ("the Act" fort short) on account of unexplained cash credit....

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....ate, same bank & branch and serially numbered. The bank wise summary of various such demand drafts are as under : i) Cheques drawn on the Gujarat State Co.op bank ltd., Ahmedabad Sr. No. Name Cheque No. Date Amount   01  Ganapatbhai A. Patel 689702 5.5.95 25000 At Kherva, Tal. Patadi, 02 Vinodchand V. Patel 689703 5.5.95 25000 At Kherva, Tal. Patadi, 03 Bhurabhai G. Patel 689704 5.5.95 25000 At Kherva, Tal. Patadi, 04 Jivanbhai L. Patel 689705 5.5.95 25000 At Kherva, Tal. Patadi, 05  Hargovindbhai C. Patel 689706 5.5.95 25000 At Kherva, Tal. Patadi 06 Baldevbhai P. Patel 689707 5.5.95 25000 At Kherva, Tal. Patadi, 07 Chamanlal V. Patel 689708 5.5.95 25000 At Kherva, Tal. Pat....

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.... At Nana Ankevaliya,SNR 29 Ghanpatbhai Patel 689774 28.6.95 25000 At Nana Ankevaliya,SNR 30 Prahladbhai M. Patel 689775 28.6.95 25000 At Nana Ankevaliya,SNR 31 Baldevbhai G. Patel 689776 28.6.95 25000 At Nana Ankevaliya,SNR 32 Hargovindbhai C. Patel 689777 28.6.95 25000 At Nana Ankevaliya,SNR         Total 800000   State Bank of India Sr. No. Name Cheque No. Date Amount Address 01 Khumansingh Jumbhai Solanki 271459 19.1.96 49000 PO Hadala T.A. Limbdi Surendranagar 02 Hemubha Jembhai Solanki 271460 19.1.96 49000 PO Hadala Dist. A'bad Dhanduka 03 Balvantsig Khumansing 271461 19.1.96 49000 T.A. Dhanduka, A"bad P.O. Hadala 04 Kumansingh Jembhai Solanki 27....

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.... 3 Labhuben A Patel 958841 16.05.95 15000 refer Sr. 4 4 Prabhubhai Patel 958842 16.05.95 18000 refer Sr. 4 5 Bhagwatiben Patel 958844 16.05.95 10000 refer Sr. 4 6 Madhuben Patle 958845 16.05.95 10000 62, Poonamnagar Bhalan Rd. Surat 7 Manoharbhai Jada 958846 16.05.95 10000 AT & PO Amrali TA. 8 Manoharbhai M Patel 958847 16.05.95 15000 64, Rangnagar Soc. Dist Surat 9 Naranbhai Patel 958848 16.05.95 10000             123000   Enquiries were conducted with the Surendra Nagar Dist Coop Bank Ltd Wadhwan City Branch regarding 32 applicants photocopies of slips of demand drafts were called for. On verification of the photocopies it is seen that : i) The demand dr....

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....firmations and PA Nos are filed along with ITR acknowledgment are considered as genuine and correct. b) Confirmations of 26 parties of share capital of Rs. 1682900 are filed in common format without any corroborative evidences to prove genuineness and credit worthiness from which source applicant has made application. c) 145 applicants for share capital of Rs. 3010000 no confirmation and source of fund and details regarding source of funds are filed. In this regard from the enquiry with banks, it is clear that demand drafts are purchased in the various name and applications are made. As the assessee company has not proved identity, credit worthiness and satisfactory explanations regarding nature and source of credit, therefore as decide....

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....it in the form of share capital of Rs. 4692900 (1682900 + 3010000) are held as income chargeable to tax in the hands of the assessee company u/s. 68 of the IT Act during the year under consideration." 6. Matter then travelled before the CIT (Appeals) and thereafter, before the Tribunal. The Tribunal by the impugned order confirmed the view of the Assessing Officer. 7. From the above discussion, it can be seen that the entire issue is based on appreciation of evidence and material on record. The Assessing Officer having given detailed reasons which were confirmed by the Tribunal, we do not see any question of law arising. The Assessing Officer noticed that payment of identical amount of Rs. 25,000/was made to as many as 32 parties through ....