Gaurav Theatres Ltd. v. Asst. Commissioner of Income-tax
[Citation -2019-LL-0726-88]
| Citation | 2019-LL-0726-88 |
|---|---|
| Appellant Name | Gaurav Theatres Ltd. |
| Respondent Name | Asst. Commissioner of Income-tax |
| Court | HIGH COURT OF ALLAHABAD |
| Relevant Act | Income-tax |
| Date of Order | 26/07/2019 |
| Assessment Year | 1996-97 |
| Judgment | View Judgment |
| Keyword Tags | substantial question of law • satisfactory explanation • unexplained cash credit • interest free loan • interest received • reason to believe • creditworthiness • disclosed income • assessment order • margin money • identity • refund • gifts • hire purchase transaction • truck plying • creditworthiness of the creditors |
| Bot Summary: | The present appeal under Section 260A of the Income Tax Act, 1961 was admitted on the following substantial question of law on 6.4.2007 :- Whether in the facts and circumstances of the case within the meaning and purport of Section 68 of the Income Tax Act, 1961 the appellant had discharged his onus and the addition of Rs.1,80,000/- as unexplained cash credit was justified The case of the assessee/appellant in nutshell is that it is a private limited company incorporated under the Companies Act, 1956, and is carrying on business of higher purchase finance of vehicle, running of Cinema Hall and also plying of trucks. Case of the assessee is that Smt.Kallu Devi, subsequently decided not to purchase the Truck and money was treated as loan. The assessment for relevant year was made on 22.3.1999 and addition of Rs.1,80,000/- was made in the income of the assessee. The appeal filed by assessee against the assessment order was partly allowed by the Commissioner of Income Tax on 18.2.2000, but the addition of Rs.1,80,000/- in the income of the appellant was upheld and the creditworthiness of Kallu Devi was discarded. We have heard learned Counsel for the appellant who has relied upon the provisions of Section 68 of the Income Tax Act and submitted that the assessee had offered explanation about the nature and source of the money credited in the books of account and further proved the identity of the creditor and also creditworthiness of creditor. Learned Counsel for the Department vehemently submitted that all the three authorities had disbelieved the creditworthiness of Smt. Kallu Devi, as the statement made by her could not give any plausible explanation as to the deposit of interest and the refund of loan given by her to the assessee and further the money which came into her by way of gifts and loans from her relatives. Having heard learned Counsel for the parties and perusing the records of the case, we find that the assessee had failed to give any satisfactory explanation as to the cash credit of Rs.1,80,000/- which was credited in the name of Smt. Kallu Devi and the authorities had rightly confirmed the addition of the said amount as unexplained cash credit. |