COMMISSIONER OF INCOME TAX Vs. K THIRUMOORTHY

JUDGEMENT

(1.) This Tax Case (Appeal) is filed by the Revenue challenging the order of the Income Tax Appellate Tribunal for the assessment year 2009-10, raising the following substantial questions of law:

(2.) The respondent/assessee is an individual trading in old bottles. In completing the assessment of income for the assessment year 2008-09 under Section 143(3) of the Income Tax Act, the Assessing Officer added a sum of Rs.47,58,616/- as unexplained credits holding that the credits appearing in the name of various parties as unconfirmed balances. Aggrieved by the said order of the Assessing Officer, the assessee preferred an appeal before the Commissioner of Income Tax (Appeals), who partly allowed the appeal directing the Assessing Officer to delete the addition to the extent of Rs.41,38,474/-. While doing so, the Commissioner of Income Tax (Appeals) took note of the payments made by the assessee to the creditors by NEFT/RTGS through the State Bank of India, Narasimhanaickenpalayam branch, the details of which are set out in paragraph 7 of the order of the Commissioner of Income Tax (Appeals). Aggrieved by the said order of the Commissioner of Income Tax (Appeals), the Revenue preferred an appeal before the Income Tax Appellate Tribunal.

(3.) The Tribunal extracted the details of the trade creditors, which was extracted by the Commissioner of Income Tax (Appeals). For better clarity, the same is reproduced below: