TaxTMI 
TaxTMI 
2022 (2) TMI 1029
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....e Income-tax Act, 1961 ( in short 'the Act') for assessment year 2008-09. 2. We shall first deal the appeal filed by the assessee for the assessment year 2008-09 pertaining to quantum assessment. Before us, the assessee has assailed the impugned order on the following grounds of appeal: "1. In the facts and circumstances of the case, order is bad in law as well as on facts. 2. In the facts and circumstances of the case, Learned Commissioner of Income Tax (Appeals) has erred in confirming the addition of Rs. 1,50,000/- on account of advance from Debtors/Creditors made by the Assessing Officer. 3. The appellant craves leave for reserving the right to amend, modify, alter add or forgo any grounds of appeal at any time before or during t....
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....resaid party was concerned, it was submitted by the assessee that it was not conversant with its present whereabouts. However, the Assessing Officer was not persuaded to subscribe to the aforesaid explanation of the assessee. It was observed by the Assessing Officer that it was beyond comprehension that the assessee would have though received a substantial amount of advance from the aforementioned party but would be ignorant about its whereabouts. Backed by his aforesaid observations, the Assessing Officer was of the view that the outstanding liability of the assessee qua the aforementioned party was bogus. It was observed by him that the aforementioned amount that was received by the assessee as an advance from the aforementioned party wou....
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....nfirmation of the aforesaid party which would have instilled any confidence as regards his explanation, the CIT(A) was of the view that it even otherwise it was unlikely that the aforesaid party would have advanced an amount in two installments; and that too two months prior to receipt of the first bag of cement from the assessee. Backed by his aforesaid observation the CIT (Appeals) upheld the view taken by the Assessing Officer and dismissed the appeal. 5. The assessee being aggrieved with the order of the CIT (Appeals), has carried the matter before us. 6. We have heard the ld. Authorized Representatives for both the parties, perused the orders of the lower authorities and the material available on record, as well as considered the jud....
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....gh upheld the addition as regards the outstanding liability in question, but the reasoning adopted by him stands on a different footing. As is discernible from the order of the CIT (Appeals), we find, that he was of the view that it was beyond business prudence that an advance would have been made by the aforesaid party, viz. M/S. DPSIPL in two installments; and that too two months before receiving the first bag of cement from the assessee. The CIT (Appeals), thus, doubting the very factum of receipt of advance by the assessee from M/s. DPSIPL had dubbed the same as a bogus liability. 7. After deliberating at length on the issue in question, we are of a strong conviction that the reasoning of neither of the authorities below find favour wi....
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....in question could have been made in the hands of the assessee during the year under consideration. Our aforesaid conviction is supported by the judgment of the Hon'ble High Court of Delhi in the case of Commissioner Of Income Tax vs. Usha Stud Agricultural Farms Ltd. (2008) 301 ITR 384 (Del), wherein it was observed as under : " 6. Section 68 of the Act reads as under: 68. Cash credits Where any sum is found credited in the books of an assessed maintained for any previous year, and the assessed offers no explanation about the nature and source thereof or the explanation offered by him is not, in the opinion of the Assessing Officer, satisfactory, the sum so credited may be charged to income-tax as the income of the assessed of that ....
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....with the view taken by the Tribunal. 11. Thus, the order of the Tribunal does not give rise to a question of law, must less a substantial question of law, to fall within the limited purview of Section 260A of the Act, which is confined to entertaining only such appeals against the order which involves a substantial question of law." It was observed by the Hon'ble High Court that as the credit balance appearing in the books of account of the assessee did not pertain to the year under consideration, therefore, there was no justification on the part of the A.O in making the impugned addition u/s.68 of the Act during the year. Backed by our aforesaid observation, we find no justifiable reason to uphold the view taken by the CIT (Appeals)....