2022 (6) TMI 600

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....se and in the law, the Ld. CIT(A) has erred in allowing the appeal of the assessee without considering the provisions of section 68 of the I.T. Act and onus to prove the genuineness of the transaction." "Whether, on the facts and circumstances of the case and in the law, the Ld. CIT(A) has erred in allowing relief to the assessee despite the failure of the assessee to prove the genuineness of the transaction, identity of the cash creditor and creditworthiness of the creditor." 2. Briefly stated facts of the case are that during the year under consideration a sum of Rs.2,00,00,000/-was shown to have been received by the assessee company on 04/05/2011 from M/s Innovative Spinning and Knitting Private Limited. During scrutiny proce....

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....njab and Haryana High Court in the case of Blowell Auto P Ltd Vs CIT reported in 219 ITR 185. 3. On further appeal, the assessee submitted before the Ld. CIT(A) that director of M/s Innovative spinning and knitting Private Limited Sh Pushpesh Kumar Baid was absconding as per the newspapers and therefore he could not be produced. The Ld. CIT(A) deleted the addition observing as under: "4.2. I have carefully considered the facts of the case and the submissions of the Id.AR. I have also gone through the decisions relied on by the AO and the ld.AR. As seen from the facts of the case an amount of Rs. 1.40 crores was shown as advance against goods under trade payable in the balance sheet entry under Current Liabilities (outstanding am....

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....mitted and the credit is by way of a bank transactions and therefore, Ld. CIT(A) has correctly deleted the addition. 5. On the contrary, the Ld. DR submitted that it was not verifiable as to the entity from the payment of Rs.2.00 crores was received in the bank account of the assessee. He submitted that the director of M/s Innovative Spinning and Knitting Private Limited was not even produced during the appellate proceeding also nor any audited accounts or income tax return etc. of said concern have been filed before the lower authorities. Therefore, the Ld. CIT(A) is not justified in deleting the addition. 6. We have heard rival submission of the parties on the issue in dispute and perused the relevant material on record. The assesse....