COMMISSIONER OF INCOME TAX Vs. K.E. GNANAVELRAJA

JUDGEMENT

(1.) This Tax Case (Appeal), filed by the Revenue, is directed against the order of the Income Tax Appellate Tribunal dated 19.08.2013 in ITANo.941/Mds/2013 for the assessment year 2006-07. The Revenue seeks admission of this Tax Case (Appeal) raising the following substantial question of law:

(2.) The respondent/assessee filed return of income admitting a total income of Rs.1,78,132/- for the assessment year 2006-07. During the course of the assessment proceedings, the Assessing Officer found certain cash and credit entries in the cash book. The assessee filed a confirmation letter from M/s.Sri Venkateswara Pictures owned by one Sri.O.G.Krishnam Raju. The Assessing Officer opined that the assessee had not established the identity of the creditor source for the cash credit amounting to Rs.50,00,000/- and therefore, he added the said sum under Section 68 of the Income Tax Act as unexplained credit and completed the assessment raising a demand of Rs.29,72,765/-. Aggrieved by such order, the assessee preferred an appeal before the Commissioner of Income Tax (Appeals), who, by order dated 08.12.2013, allowed the appeal. Challenging the same, the Revenue filed an appeal before the Income Tax Appellate Tribunal. The Tribunal, by the impugned order, rejected the appeal and as against which, the present appeal has been preferred by the Revenue.

(3.) Learned Standing Counsel appearing for the Revenue reiterated the contentions raised before the Tribunal and submitted that the Tribunal failed to see that the confirmation letter filed by the assessee did not contain even the pan number and therefore, it cannot be considered as a sufficient proof of the credit.