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| The Tax Publishers2019 TaxPub(DT) 0565 (Bom-HC) INCOME TAX ACT, 1961
Section 260A
Where Tribunal found that CIT(A) had applied the correct legal principles that were applicable to facts and circumstances of assessee's case and there was a subsequent development that each of creditors from whom assessee borrowed moneys or those who advanced moneys to it, were repaid the sums borrowed, further appeal was not entertained by Court for it was not possible to re-appreciate and reappraise such factual findings.
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Appeal (High Court) - Maintainability - Facts findings endorsed by Tribunal but matter remanded for verification of subsequent developments -
In appeal CIT(A) had held that creditworthiness of cash creditor was fully vouched and hence action of AO in rejecting the explanation of assessee was not tenable in eyes of law. Tribunal found that CIT's order cannot be faulted for he applied the correct legal principles that were applicable to facts and circumstances of assessee's case. In addition, there was a subsequent development and namely that each of creditors from whom assessee borrowed moneys or who advanced it moneys, were repaid the sums borrowed. Held: Tribunal did not commit any error of law nor its finding was perverse. Once it was satisfied with regard to essential ingredients of section and manner in which whole case was approached by CIT(A), then, with regard to assertion of repayment and styling it as a subsequent development relevant and germane to case in hand, Tribunal deemed it fit and proper to send matter back to AO. That was to make it doubly sure as to whether indeed there was a repayment of amount borrowed and claimed as advances from parties in question. Further, appeal was, therefore, not entertained by Court for it was not possible to re-appreciate and reappraise such factual findings. They were not demonstrably perverse nor vitiated by any error of law apparent on face of record.
REFERRED :
FAVOUR : In assessee's favour.
A.Y. :
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