CIT vs. VALLEY COMPUTECH PVT LTD

IN THE HIGH COURT OF DELHI AT NEW DELHI . 12.11.2010 . . Present: Ms. Rashmi Chopra, Advocate for the Appellant. . + ITA No. 1735/2010. . In the Assessment Year in question it was found by the Assessing Officer that the assessee had shown credit of ` 33 lacs in the name of M/s. Indo Monex Pvt. Ltd. Most of these deposits, on different dates were made by cheques. However, it also included a sum of ` 11 lacs by means of cash. The Assessing Officer added the aforesaid ` 11 lacs as undisclosed income of the assessee under Section 68 of the Income Tax Act. The CIT(A) reversed this order of the assessee holding that the cash deposited in the bank of the assessee of ` 11 lacs was confirmed by M/s. Indo Monext Pvt. Ltd. and since the source was established by said confirmation, the addition could not be sustained. This order of the CIT(A) is upheld by the Tribunal as well. It is clear from the aforesaid facts that the assessee had borrowed ` 33 lacs from M/s. Indo Monex Pvt. Ltd which were given on different dates, ` 22 lacs was given by means of cheques and ` 11 lacs was given by cash on different dates. When the creditor, namely, M/s. Indo Monex Pvt. Ltd. itself has confirmed that it had paid the amount to the assessee, . -2- . . such an amount could not be treated as undisclosed income. We find that no substantial question of law arises. Dismissed. . A.K. SIKRI, J. . SURESH KAIT, J. NOVEMBER 12, 2010 hk . #1