COMMISSIONER OF INCOME TAX Vs. AMETAK AUTO LTD.

JUDGEMENT

(1.) This appeal has been preferred by the Revenue under s. 260A of the IT Act, 1961 (for short, "the Act") against the order (2007) 112 TTJ (Del) 455 - -Ed.] for the asst. yr. 1998 -99 proposing to raise following substantial question of law :

(2.) THE assessee is a private limited company. During assessment, the AO found that the assessee had made cash credit entries of huge amount of unsecured loans, genuineness of which was doubtful. Accordingly, the assessee was called upon to prove the identity, creditworthiness and genuineness of the transactions and after consideration of the explanation of the assessee, addition was made, treating the deposits as income of the assessee. It was held that the assessee failed to discharge the burden under s. 68 of the Act about the nature and sources of deposits. The relevant observations are :

(3.) ON appeal of the assessee, the CIT(A) deleted the addition with the following observations :