Shanti Prime Publication Pvt. Ltd.
Sec. 68 of Income Tax Act, 1961—Cash Credit— Assessee filed appeal against the order of Id. CIT(A), the appeal of assessee was heard by the co-ordinate bench and has upheld the respective orders passed by the Id CIT(A). Assessee moved a misc. application that the assessee’s appeal was not decided by the tribunal while passing the order, thereafter, the misc. application was disposed off by the co-ordinate bench vide order dated 03.06.2019 and the earlier order of tribunal was recalled for the limited purpose of adjudication. The assessee was engaged in the business of real estate and filed its return of income on 31.10.2007. Thereafter, on the basis of certain information received by the assessing officer, the case of assessee was reopened after seeking requisite approval and notice u/s 148 was issued on 14.03.2014, in response of the notice assessee filed its return and also requested for the copy of the reasons, which were duly supplied to the assessee. As per the assessing officer, the assessing officer, the assessee has entered into a memorandum of understanding dated 22.03.2006 with M/s U-Turn Housing Ltd. for sale of its land.The assessing officer noted that the cash payment was a part of MOU. As per copy of accounts furnished by M/s U-Turn Housing Pvt. Ltd., it was found that cash payment was made to assessee against purchase of land, but it was found that no such receipts have been declared by the assessee in its books of accounts. Therefore the cash payment was treated assessee’s unexplainedcash credit, by invoking provisions of section 68 of the Act, and the same was added to income of assessee for impugned assessment year. The assessment was accordingly completed u/s 147 read with 143(3) dated 20.03.2015.On appeal of assessee, on the facts and circumstances of the case there was no reliable piece of evidence against the assessee company in view of various discrepancies and lack of corroboration, further, there was no material on record which could form the basis to hold that the assessee company had received cash from M/s U-tern Housing Pvt. Ltd. which has been accounted for in the books of accounts during the financial year 2006-07. Therefore, the addition made by assessing officer to this effect was directed to be deleted. --- Rajasthan Land Developers Pvt. Ltd. Vs. DCIT. (2020) 23 ITCD Online 16 (JP)