|The Tax Publishers2021 TaxPub(DT) 0711 (All-Trib)
INCOME TAX ACT, 1961
Where creditworthiness of the lender did not stand proved by the assessee, the order of the Tribunal does not deserve interference within limited scope of provisions of section 254(2) confirming addition made under section 68.
Appeal (Tribunal) - Rectification under section 254(2) - Well-reasoned order passed by Tribunal -
Assessee filed miscellaneous application under section 254(2) seeking to correct mistake apparent from records in the appellate order passed by Tribunal confirming addition made under section 68 on account of failure to prove creditworthiness of the lender by the assessee. Held: Huge payments being fresh cash credit were received by assessee during the previous year relevant to impugned assessment year which was without any interest liability being incurred by assessee. The said peak cash credit during the year (inclusive of opening balance) was to the tune of Rs. 90 lacs from M/s, Steel Industries which did not bear any interest and sale transaction made by assessee to said M/s R R Industries was merely Rs. 39,399. Thus, based on material on record , the Tribunal has passed well-reasoned order in which conscious decision was taken by Tribunal in allowing Revenue's appeal by holding that creditworthiness of the lender did not stand proved by the assessee and the order of the Tribunal does not deserve interference within limited scope of provisions of section 254(2).
FAVOUR : Against the assessee
A.Y. : 2010-11
IN THE ITAT, ALLAHABAD BENCH
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