I.T.O. WARD -1, AMRAVATI vs. SHRI SANJAY NANASAHEB BHARSAKALE, AMRAVATI

ITA 81/NAG/2018Status: DisposedITAT Nagpur16 July 2024AY 2011-2012Bench: SHRI V. DURGA RAO (Judicial Member)12 pages
AI SummaryDismissed

What did the Tribunal hold?

The Tribunal confirmed the order of the CIT(A) and held that the addition made under Section 68 was not justified. The Tribunal found that the creditors had appeared and confirmed the advances, stating their source was agricultural income and sand business, and these advances were later adjusted with sales or repaid.

What were the facts?

The Assessing Officer (AO) made an addition of Rs. 2.05 Crores as unexplained cash credit under Section 68 of the Income Tax Act, 1961, against the assessee. The AO's reasoning was that the creditors had meager agricultural income and insufficient bank balances to support the cash advances given to the assessee for sand extraction business.

What were the issues?

Whether the cash credits introduced by the assessee were unexplained and liable for addition under Section 68, despite the creditors confirming the transactions and their sources.

Which sections of the Income-tax Act were involved?

Section 68,Section 143(3),Section 147,Section 269T

AI-generated summary — verify with the full judgment below

Cases cited in this judgment(11)Show list

Detected automatically from the text. Citations are also linked where they appear in the judgment. The count shows how many other judgments on BharatTax rely on the same authority.

Income Tax Appellate Tribunal, NAGPUR BENCH, NAGPUR

Before: SHRI V. DURGA RAO & SHRI K.M. ROY, ACCOUNTANT, MEMBER

For Appellant: Shri Manoj Moriyani, Advocate
For Respondent: Shri Abhay Y.Marathe, Sr.Dr

PER K.M.ROY, A.M.

The present appeal has been preferred by the department challenging the impugned order dated 31/01/2018, passed u/s 250 of the Income Tax Act, 1961 ("the IT Act") by the learned Commissioner of Income Tax (Appeals), Nagpur, [“learned CIT”], for the assessment year 2011-12, emanating against the order u/s 143(3) r.w.s. 147 of the I.T. Act, 1961, by ITO, Ward-1, Amravati, on 23/03/2015. ITO Ward-1 Amravati vs. Sanjay Nanasaheb Bharsakale ITA no.81/Nag./18

2.

The department has raised following grounds of appeal:– “1. On the facts and circumstances of the case and in law the learned CIT (Appeals)-1 Nagpur has erred in deleting the addition of Rs.2,05,00,

The order continues below.

Read the full judgment

A free account opens 10 full judgments a month. Re-reading one you have already opened does not count again.

Create a free accountSign in

See plans and prices

The summary, the parties, the sections and the citations above are open to everyone and always will be. Only the text of the order and the PDF are metered.

More judgments on Section 68

All 29,931 judgments and leading authorities on Section 68 →

Recent GST High Court judgments

Search GST case law →