By K. B. Bhujle, Advocate
Princ.
CIT vs. Veedhata Tower P. Ltd.; 403 ITR 415 (Bom): Date of Order: 17th
April, 2018:
A.
Y.: 2010-11:
Section
68 of I. T. Act, 1961
The assessee obtained a
loan from LFPL. For the A. Y. 2010-11, the Assessing Officer held that the
assessee was unable to establish the genuineness of the loan transactions
received in the name of LFPL nor prove the credit worthiness or the real source
of the funds and made an addition of the loan of Rs. 1.65 crore as unexplained
cash credit u/s. 68 of the Income-tax Act, 1961.
The Tribunal held that the
assesse had discharged the onus placed upon it u/s. 68 of the Act by filing
confirmation letters, affidavits, the full addresses and PAN of creditors, that
therefore, the Department had all the details available with it to proceed
against the persons whose source of funds were alleged to be not genuine and
deleted the addition made by the Assessing Officer.
On appeal by the Revenue,
the Bombay High Court upheld the decision of the Tribunal and held as under:
“i) The proviso to section 68 of the Act was
introduced by the Finance Act, 2012 w.e.f 01/04/2013 and therefore, it would be
effective only from the A. Y. 2013-14 onwards and not for earlier assessment
years.
ii) The Tribunal found that the assessee had discharged
the onus which was cast upon it in terms of the pre-amended section 68 of the
Act by filing the necessary confirmation letters of the creditors, their
affidavits, their full addresses and their PANs. The finding of fact was not
shown to be perverse.
iii) Since there was no obligation to explain the
source of the source prior to 01/04/2013, i.e. A. Y. 2013-14, no substantial
question of law arose from the order of the Tribunal.”
