Itta/415/2012 Of G.n.naidu v. The Jt Commisioner Of Income Tax

HON'BLE SRI JUSTICE GODA RAGHURAMANDHON'BLE SRI JUSTICE M.S.RAMACHANDRARAO I.T.T.A.No.415 of 2012 JUDGMENT: (per Hon’ble Sri Justice Goda Raghuram) Heard Sri Challa Gunaranjan, learned counsel forthe appellant. This appeal by the assessee under Section 260-Aof the Income Tax Act, 1961 (for short ‘the Act’) ispreferred against the order of the Income Tax AppellateTribunal, Hyderabad Bench dated 19.06.2009 wherebythe assessee’s appeal-I.T.A.No.140/Hyd/03, pertaining tothe assessment year 1998-99 was rejected. While computing the assessment pertaining to theassessment year 1998-99 under Section 143(3) of theAct, the Assessing Officer by order dated 30.03.2001made an addition of Rs.31,79,083/- under Section 68 ofthe Act, concluding that the assessee had received thesaid amount from 25 parties for which the assessee hadbeen unable to prove either the identity of the persons ortheir credit worthiness. The assessee’s appeal was considered by theCommissioner of Income Tax (Appeals), Hyderabad whoremanded the matter to the Assessing Officer with adirection to verify the genuineness of the loan transactionand identify the credit worthiness of the creditors. In hisreport, the Assessing Officer stated that on examination ofthe bank pass books produced in respect of 11 creditors,it was noticed that those creditors had deposited theactual amount in cash either on the same day or just aday before, in their bank accounts; and issued chequesfor purchasing D.Ds and obtained D.Ds either on thesame day or on the following day. After considering the report of the Assessing Officer, the Commissioner ofIncome Tax (Appeals) accepted the genuineness of Rs.6lakhs, but confirmed the addition by the Assessing Officerto an extent of Rs.25,79,083/-. Aggrieved thereby, the assessee preferred a furtherappeal to the Tribunal, which dismissed the assessee’sappeal on a cogent consideration of the material onrecord and concurring with the finding that the creditorspresented by the assessee were drawing meageramounts of salary from the assessee’s own organization;none of them had obtained D.Ds out of the bank balancesbuilt over a period of time; the cash equivalent to the D.Dsamounts were deposited either on the same day or on thenext day; some of the creditors even directly obtained theD.Ds. by paying cash as they were not having bankaccounts; and the D.Ds were prepared by only oneperson and the signatures on the D.D applications do nottally with signatures of the creditors. On the aforesaid concurrent findings of fact basedon legitimate and logical inferences from the record, wefind no question of law, let alone a substantial question oflaw arising for consideration in this appeal. Accordingly, the Appeal is dismissed at the stage ofadmission. No costs. ______________________ JUSTICE GODA RAGHURAM 07[th] November 2012DR __________________________ JUSTICE M.S.RAMACHANDRA RAO