CIT Vs. ARYA AUTO FINANCERS

JUDGEMENT

(1.) THE present appeal has been filed under section 260A of the Income Tax Act against the order dt. 29 -3 -2005 passed by the Income Tax Appellate Tribunal, Agra Bench, Agra in ITA No. 150/Agra/2001 for the assessment year 1997 -1998.

(2.) THE assessee respondent is a partnership firm and is engaged in the business of hire purchase finance. For the relevant assessment year 1997 -1998 it filed return of income disclosing the same at Rs.280. The matter was taken up by invoking section 143(3) of the Income Tax Act by the Assessing Authority. During the course of assessment proceeding, the Assessing Authority has noticed that the assessee Firm has received deposits from various persons. All these deposits have been categorized under three heads -Fixed Deposits, Small Deposits and Cumulative Deposits.

(3.) THE assessing officer was of the opinion that the assessee has not been able to prove these cash credits about nature and source whereof. Explanation offered by the assessee with regard to all these cash credits were found unsatisfactory. Additions were made under section 68 of the Income Tax Act. The matter was carried unsuccessfully in appeal before the Commissioner (Appeals) -I, Agra. The assessee filed a second appeal before the Tribunal. The Tribunal by the order under appeal has allowed it. The above appeal has been admitted on the following substantial questions of law: - -