TaxTMI 
TaxTMI 
TaxTMI 
2025 (8) TMI 1191
X X X X Extracts X X X X
X X X X Extracts X X X X
.... 543/Ind/2018 (Revenue Appeal) whereby the appeal preferred against the order dated 07.03.2018 of the Commissioner of Income Tax - II (Appeals), Indore dated 07.03.2018 was dismissed. 02. The respondent assessee is a Private Limited Company incorporated on 31.03.2007 under the Companies Act, 1956 and is engaged in the business of trading in pulses and other commodities. For the relevant assessment year 2011-12, the assessee filed its original E-return of income electronically on 28.09.2011 declaring total income of Rs.11,22,487/- and subsequently revised ITR was filed on 31.03.2013 declaring a revised total income of Rs. 25,97,320/-. 03. The case was selected for scrutiny under the provisions of Section 143(2) of the Act and a notice to t....
X X X X Extracts X X X X
X X X X Extracts X X X X
....o Rs. 1,52,04,69,498/-. 06. Aggrieved by the said assessment order, the assessee preferred an appeal before the Commissioner of Income Tax (Appeals) - II, Indore. The CIT (A) upon considering the submissions of assessee and the remand report of the Assessing Officer partly allowed the appeal and deleted the two additions while maintaining one addition. 07. The learned CIT(A) observed that in respect of the addition of Rs. 148,92,31,583/- under Section 68 for unexplained bank credits, the assessee had produced complete bank statements, ledgers, confirmations, explanations and the assessing officer had accepted that the entries were duly recorded and related to business advances or sales thus the addition was deleted. 08. Regarding the add....
X X X X Extracts X X X X
X X X X Extracts X X X X
....in the earlier year and were merely cleared in the current year. The deletion of Rs. 79,60,000/- being genuine advances and loans received from various parties and duly recorded in the assessee's books was also upheld in view of the Assessing Officer's acceptance in the remand proceedings. 12. The learned tribunal found no infirmity in the deletion of Rs. 24,85,75,000/- received as advances against sale orders since these were established through bank entries and books of account as part of regular business transactions. In respect of Rs. 76,43,79,291/- stated to be amounts received against advances earlier given the Learned Tribunal took note of confirmations from the concerned parties and the Assessing Officers own admission that the ass....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... infirmities as the learned Tribunal failed to apply the settled principle under Section 68 of the Income Tax Act, 1961 and that the initial burden lies squarely on the assessee to establish the identity of the creditors, their creditworthiness and the genuineness of the transactions. 16. Learned counsel submitted that the non-production of primary evidence during the assessment proceedings could not be cured by furnishing documents for the first time before the appellate authority. Learned counsel submitted that the reliance placed by the CIT(A) and the Tribunal on the remand report was misplaced as the report itself was based on documents belatedly produced without any contemporaneous verification. Such acceptance of unverified material ....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... "Substance will prevail over form". The ITAT ignored the fact that transactions were routed through banking channels, they cannot be termed as genuine? III. Whether on the facts and in the circumstances of the case, the ITAT was justified in law in sustaining the deletion of addition of Rs. 13,53,654/- made on account of treating Short Term Capital Gain as Business Income - by making perversity of finding of facts in ignoring the findings of the AO & of the Remand Report? We have heard the learned counsel for the appellant at length on admission. 20. There is a concurrent finding recorded by learned CIT as well as ITAT. Initially, the Assessing Officer passed an order in favour of Revenue by adding the income of Rs. 2,86,40,600/- on th....