THE COMMISSIONER OF INCOME TAX (1) JABALPUR vs. M/S MAHARSHI PRINTERS P.LTD. 5-ZONE-2

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ITA/225/2012HC Madhya PradeshMPHC01050173201208 October 20153 pages
AI SummaryDismissed

What did the High Court hold?

The High Court held that the concurrent findings of the Commissioner (Appeals) and the Appellate Tribunal regarding the creditworthiness of Shri Kishori Lal Asera and Shri Sanjeev Maheshwari were findings of fact. These findings were based on a due appreciation of the material on record, including the fact that both creditors were subjected to income tax, possessed PAN numbers, filed returns, and that the transactions were conducted through banking channels and recorded in bank statements. Consequently, the Court found no substantial question of law warranting consideration and dismissed the appeal. No specific issue was left undecided.

What were the facts?

The Revenue, Commissioner of Income Tax (1) Jabalpur, filed an appeal under Section 260-A of the Income Tax Act challenging the deletion of Rs. 5 lacs received by the assessee, M/s. Maharshi Printers (P) Ltd., from Shri Kishori Lal Asera and Rs. 45 lacs from Shri Sanjeev Maheshwari. The Assessing Officer had added these amounts to the assessee's income, deeming the creditors' creditworthiness unestablished. The Commissioner (Appeals) deleted the additions, finding that the assessee was not adequately heard by the Assessing Officer and that the transactions were made through banking channels, with the creditors accounting for the amounts in their Income Tax returns. The Appellate Tribunal upheld the Commissioner's findings.

What were the issues?

1. Whether there is a substantial question of law arising from the deletion of Rs. 5 lacs and Rs. 45 lacs added to the assessee's income by the Assessing Officer, which was subsequently deleted by the Commissioner (Appeals) and upheld by the Appellate Tribunal. Assessee's Contention: The judgment does not record any specific arguments made by the assessee before the Tribunal. However, the Commissioner (Appeals) had found that the assessee was not granted adequate opportunity by the Assessing Officer and that the transactions were through banking channels, with creditors accounting for the amounts in their returns. Revenue's Contention: The Revenue contended that the creditworthiness of the two creditors, Shri Kishori Lal Asera and Shri Sanjeev Maheshwari, was not established, justifying the addition of the amounts to the assessee's income.

Which sections of the Income-tax Act were involved?

Section 260-A

AI-generated summary — verify with the full judgment below

ITA-225-2012 (THE COMMISSIONER OF INCOME TAX (1) JABALPUR Vs M/S MAHARSHI PRINTERS P.LTD. 5-ZONE-2) 08-10-2015 HIGH COURT OF MADHYA PRADESH AT JABALPUR ITA.No.225/2012 The Commissioner of Income Tax (1) Jabalpur Vs. M/s. Maharshi Printers (P) Ltd.5-Zone-2 Present: Hon'ble Shri Justice Rajendra Menon Hon'ble Shri Justice C.V. Sirpurkar Shri Sanjay Lal, learned counsel for the appellant. Shri S.S. Bisen, learned counsel for the respondent. _____________________________________________________ Judgment (08/10/2015) Per Rajendra Menon, J. In this appeal filed by the revenue under Section 260-A of the Income Tax Act challenge is made to deletion of Rs.5 lacs said to have been received by the assessee from the creditor Shri Kishori Lal Asera and the further in sum of Rs.45 lacs from Shri Sanjeev Maheshwari. It has been held by the Assessing Officer that the credit worthiness of these two creditors are not established and therefore the amount has been added to the income of the assessee. However, when the matter traveled to the Commissioner appeals, the Commissioner appeal found that the assessee was not granted the adequate opportunity by the Assessing Officer to prove the credit worthiness of these creditors and further on going through the Bank statement, the Income Tax return and other documents filed by the creditors. It was found that the transaction has been made through Banking channels. All the amount has been accounted for by the creditors in their Income Tax return and finding the credit worthiness of the creditors to be established, the additions have been deleted by the commissioner. The matter was re-examined by the Appellate Tribunal and the Tribunal has also found that both the creditors are subjected to payment of Income Tax, they have Pan Numbers to their credit, they have filed the returns in the respective Income Tax zones of the department and finding that the transactions are recorded in the statements through Banking channels. The Findings recorded by the Commissioner Income Tax Appeal is upheld by the Tribunal. The concurrent findings recorded by the Commissioner appeals and the Tribunal in the matter of upholding the credit worthiness of Shri Kishori Lal Asera and Shri Sanjeev Maheshwari is the finding of fact based on due appreciation of the material available on record and we find no substantial question of law warranting for the due consideration, the appeal is therefore dismissed. (RAJENDRA MENON) JUDGE (C V SIRPURKAR) JUDGE

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