Non submission of the details of creditors due to seized of books of accounts by the revenue cannot be treated as ground for making addition

Last updated: 10 July 2012

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Court :
INCOME TAX APPELLATE TRIBUNAL

Brief :
The first assessment order was passed in this case u/s.143(3)/144B on 12.04.1984. A search & seizure operation was conducted in the case of the assessee on 04.11 .1982. Various documents and books of accounts were seized and the contents of such seized materials were duly considered while framing the assessment order. Specifically seized documents vide Identification Nos. JT-6, JT-8, AKB-1 & AKB-4, which recorded several squared off accounts in the names of various persons showing cash credit entries in the books of the assessee. There were 23 such accounts including that of M/s. ABC Corporation Ltd. Peak credit balance of each such account were taken together which amounted to Rs.22,05,000 and was added to the total income of the assessee treating the said amount as unexplained Cash Credit u/s.68 of the I.T. Act. 1961 since the assessee could not substantiate its claim regarding the source and reasons for such cash credit entries in its account.

Citation :
ITA No.1256/Kol/2010 Assessment Year: 2007-08 I.T.O., Ward-1(2), Kolkata (APPELLANT) Vs M/s.Bajrangbali Engineering Co.Ltd., Kolkata (PAN: AABCB 3139 R)(RESPONDENT)

Daily Limit Reached