The Commissioner Of Income Tax - I, Nashik v. Madhukar Narhar Brahmankar

IN THE HIGH COURT OF JUDICATURE AT BOMBAYORDINARY ORIGINAL CIVIL JURISDICTION INCOME TAX APPEAL NO.947 OF 2010 The Commissioner of Income Tax - I, Nashik Versus Madhukar Narhar Brahmankar ..Appellant. ..Respondent. Mr.Vimal Gupta for the appellant.Mr.S.N. Inamdar for the respondent. CORAM : J.P. Devadhar & Smt.R.P. Sondurbaldota, JJ. DATE : 20[th] June, 2011. P.C. : 1.The Revenue has raised following questions of law in this appeal. (a)Whether on the facts and in the circumstances of the case and in law the Tribunal was justified in deleting the addition made by the Assessing Officer of Rs.14,38,314/- to the Gross Profit of the Assessee under Section 145A of the Income-tax Act ?and in law the Tribunal was justified in deleting the addition made by the Assessing Officer of Rs.14,38,314/- to the Gross Profit of the Assessee under Section 145A of the Income-tax Act ? (b)Whether on the facts and in the circumstances of the case and in law the Tribunal was justified in deleting the addition made by the Assessing Officer of Rs.24,474/- to the Gross Profit of the Assessee under Section 145A of the Income-tax Act ?and in law the Tribunal was justified in deleting the addition made by the Assessing Officer of Rs.24,474/- to the Gross Profit of the Assessee under Section 145A of the Income-tax Act ? (c)Whether on the facts and in the circumstances of the case and in law the Tribunal was justified in deleting the addition and in law the Tribunal was justified in deleting the addition of Rs.11,14,105/- made by the Assessing Officer u/s.68 of the Income Tax Act, being alleged loan along with interest repaid by the daughter of the Assessee to Patsanstha in cash which was paid by the Assessee out of the undisclosed income ? (d)Whether on the facts and in the circumstances of the case and in law the Tirbunal was justified in deleting the disallowance of interest claimed to be paid by the assessee amounting to Rs.90,934/- to his daughter on the loan held to be non-genuine ?and in law the Tirbunal was justified in deleting the disallowance of interest claimed to be paid by the assessee amounting to Rs.90,934/- to his daughter on the loan held to be non-genuine ? (e)Whether on the facts and in the circumstances of the case and in law the Tribunal was justified in deleting the addition made by the Assessing Officer of Rs.7,00,000/- on account of unexplained Cash-Credit u/s.68 of the Income Tax Act being unsecured loan received from creditor even though the identity of the creditor and the genuineness of the alleged oan could not be proved by the assessee ?and in law the Tribunal was justified in deleting the addition made by the Assessing Officer of Rs.7,00,000/- on account of unexplained Cash-Credit u/s.68 of the Income Tax Act being unsecured loan received from creditor even though the identity of the creditor and the genuineness of the alleged oan could not be proved by the assessee ? 2.As regards questions (a) and (b) are concerned, the findings of fact recorded by the Tribunal is that unless there is a finding recorded by the assessing officer to the effect that there is defect in the books of account and due to that defect correct income could not be deduced, the additions could not be sustained. In the present case, there is no such finding recorded by the assessing officer. In this view of the matter, deletion of the additions made by the assessing officer by the Income Tax Appellate Tribunal cannot be faulted. Accordingly, questions (a) and (b) cannot be entertained. 3.As regards questions (c) and (d) are concerned, the finding of fact recorded by the Tribunal is that the loan transactions as well as payment of interest were effected through banking channels and the source was also 3.As regards questions (c) and (d) are concerned, the finding of fact recorded by the Tribunal is that the loan transactions as well as payment of interest were effected through banking channels and the source was also duly established. The Tribunal has recorded a finding of fact that the repayment of loan and interest are genuine. There is no material to controvert these finding of fact recorded by the the Income Tax Appellate tribunal. In these circumstances, the decision of the Tribunal cannot be faulted. According, questions (c) and (d) cannot be entertained. 4.As regards question (e), the finding of fact recorded by the Tribunal is that though the assessee had taken loan of Rs.7 lakh in cash, the person from whom the loan was taken has confirmed that he has advanced such loan and his source of income has also been given and accordingly the transaction is a genuine transaction. The decision is based on finding of fact, hence question (e) cannot be entertained. 5.In the result, the appeal stands dismissed with no order as to costs. (Smt.R.P. Sondurbaldota, J.) (J.P. Devadhar, J.)