2022 (11) TMI 22

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....ent Tax Appeal filed under section 260-A of the Income Tax Act, 1961, is directed against judgment and order dated 7.2.2022 of the Income Tax Appellate Tribunal, "D" Bench, in ITA No. 1235 of 2019 in respect of the Assessment Year 2010-2011. 2.1 The appellant Revenue has proposed the following substantial question of law claiming to be arising in the appeal, "Whether on the facts and circumstances of the case and in law, the decision of the Appellate Tribunal is ex-facie perverse because the Appellate Tribunal has erred in deleting the addition of Rs. 39,05,50,000/- made u/s 68 of the Act for the funds received from M/s. Rachna Finlease Pvt. Ltd. without appreciating the entire gamut of facts making it evident that the transacti....

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....o the said M/s. Rachna Finlease Pvt. Ltd. in the financial year 2010-2011 relevant to the Assessment Year 2011-2012. It was the case of the assessee that the credit was recorded in the Books and was paid back also. Accordingly to the Assessing Officer, the explanation given by the assessee was not satisfactory to prove the creditworthiness of the creditor, that is M/s. Rachna Finlease Pvt. Ltd.. 4. Invoking provisions of section 68 of the Act, the Assessing Officer treated the amount of Rs. 39,05,50,000/- as unexplained cash credit and added in the total income of the assessee. Also started were the penalty proceedings under section 271 (1)(c) read with section 274 of the Act. Section 68 of the Act is regarding Cash Credits. It says that....

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....demonstrate that amount was received through banking channel. Before the Appellate Authority, the assesee could establish that M/s. Rachna Finlease Pvt. Ltd. had received money from one Smt. Hansaben H. Patel and from one Shri Rameshbhai Thakore and the said factumm was fortifiable from the bank statement of the creditor M/s. Rachna Finlease Pvt. Ltd. It was noted by the Appellate Authority that the said aspect was recorded by the 5.1 Assessing Officer also in paragraph No. 6.1.3 of its order, which reads as under, "On verification of the bank book of Rachna Finelease Pvt. Ltd. it is found that the fund have travelled within minutes of being credited from the bank account of Hansaben H. Patel and Rameshbhai Thakor and immediatel....