Crystal Networks (P.) Ltd. v. CIT

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The Tax PublishersI. T. A. No. 158 of 2002 2013 TaxPub(DT) 1470 (Cal-HC) : (2013) 052 (I) ITCL 0599 : (2013) 353 ITR 0171 INCOME TAX ACT, 1961 --Income from undisclosed sources--Addition under section 68 Unexplained cash credits--Assessee trading in bidis had shown certain amount of cash advances. Assessing officer made addition under section 68 on account of cash advances as assessee had failed to establish identity of the creditors of the cash advances. According to Commissioner (Appeals), there were sufficient materials to hold that the cash credits received by assessee were genuine and the same were received as against the supply of bidis after analysing necessary challans, vouchers and other confirmatory letters submitted by assessee. Tribunal held that Commissioner (Appeals) had erroneously held that the summons were issued after assessment was done and only on that ground it was held that assessee could not establish by producing evidence that the credit was received from various customers. *Held:* Not rightly so, as Tribunal had not adjudicated upon the case of assessee in the light of the evidence as found by Commissioner (Appeals). Income Tax Act, 1961, Section 68 Income Tax Act, 1961, Section 254 In the Calcutta High Court Sengupta & Kanchan Chakraborty J.J. Crystal Networks (P.) Ltd. v. CIT I. T. A. No. 158 of 2002 A.Y. 1994-95 29 July, 2010 JUDGMENT This appeal was admitted by this court on the following substantial questions of law : 'I. Whether, on the facts and in the circumstances of the case, the Tribunal is justified in law in confirming the addition of Rs. 8,50,000 as unexplained cash credit made by the assessing officer solely relying on an entry made in the order sheet which has no direct nexus with the present issue and while completely ignoring all the relevant materials and evidence available ? SUBSCRIBE FOR FULL CONTENT

The Tax PublishersI. T. A. No. 158 of 2002
2013 TaxPub(DT) 1470 (Cal-HC) : (2013) 052 (I) ITCL 0599 : (2013) 353 ITR 0171

INCOME TAX ACT, 1961

--Income from undisclosed sources--Addition under section 68 Unexplained cash credits--Assessee trading in bidis had shown certain amount of cash advances. Assessing officer made addition under section 68 on account of cash advances as assessee had failed to establish identity of the creditors of the cash advances. According to Commissioner (Appeals), there were sufficient materials to hold that the cash credits received by assessee were genuine and the same were received as against the supply of bidis after analysing necessary challans, vouchers and other confirmatory letters submitted by assessee. Tribunal held that Commissioner (Appeals) had erroneously held that the summons were issued after assessment was done and only on that ground it was held that assessee could not establish by producing evidence that the credit was received from various customers. Held: Not rightly so, as Tribunal had not adjudicated upon the case of assessee in the light of the evidence as found by Commissioner (Appeals).

Income Tax Act, 1961, Section 68

Income Tax Act, 1961, Section 254

In the Calcutta High Court

Sengupta & Kanchan Chakraborty J.J.

Crystal Networks (P.) Ltd. v. CIT

I. T. A. No. 158 of 2002

A.Y. 1994-95

29 July, 2010

JUDGMENT

This appeal was admitted by this court on the following substantial questions of law :

'I. Whether, on the facts and in the circumstances of the case, the Tribunal is justified in law in confirming the addition of Rs. 8,50,000 as unexplained cash credit made by the assessing officer solely relying on an entry made in the order sheet which has no direct nexus with the present issue and while completely ignoring all the relevant materials and evidence available ?