2020 (9) TMI 966

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....ard both the parties. Case file(s) perused. 2. With the consent of both the learned representative(s) and in view of the Revenue's averments in its condonation petition / affidavit dated 20.02.2020, we condone the impugned delay of eleven days' in filing the case. The case is now taken up for adjudication on merits. 3. The Revenue's first and foremost substantive grievance pleads that the CIT(A) has erred in law and on facts in deleting the sec. 68 of unexplained cash credits addition of Rs. 2,50,000/- in the nature of assessee's share application money added in the course of assessment framed on17.03.2016 despite the fact that the same lack of genuineness / creditworthiness. It transpires at the outset qua the instant issue that the ....

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....iscussed above, the share premium was raised earlier years. Therefore, the addition is bad in law and cannot be sustained. The order passed u/s 144 of the Income-tax Act, 1961 is best judgment assessment in which the AO shall take into account all relevant material which he has gathered and after giving the appellant sufficient opportunity being heard, make assessment of the total income or loss to best of judgment and determined the sum payable by the appellant. This section does not give arbitrary power to the AO to make the assessment on his whims and fancies. The assessment order should be based on material available with the AO and shall be reasonable estimate. It appears that the AO has not considered the audited accounts available wi....

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....amount under various head(s). We therefore see no merit in the Revenue's second substantive grievance as well. 6. Now comes to Revenue's third substantive grievance seeking to revive unexplained cash credits addition of Rs. 11,01,350/- made in the course of assessment and restricted to Rs. 20,694/-. We notice with the able assistance of both the learned representative(s)that the assessee's cash-in-hand-cum-books of account as on 01.04.2012 was Rs. 3,98,519/- followed by similar withdrawals / deposit his cash-inhand on 31.03.2013 was at Rs. ,06,974/- only remaining unexplained from the taxpayer's side. This is what appears to have been prompted the CIT(A) could add the balance figure of Rs. 2,06,974/- only. All these facts and figures hav....