{"id":136505,"date":"2011-03-22T00:00:00","date_gmt":"2011-03-21T18:30:00","guid":{"rendered":"https:\/\/www.legalindia.com\/judgments\/acid-vs-unknown-on-22-march-2011"},"modified":"2018-12-12T23:23:08","modified_gmt":"2018-12-12T17:53:08","slug":"acid-vs-unknown-on-22-march-2011","status":"publish","type":"post","link":"https:\/\/www.legalindia.com\/judgments\/acid-vs-unknown-on-22-march-2011","title":{"rendered":"Acid vs Unknown on 22 March, 2011"},"content":{"rendered":"<div class=\"docsource_main\">Gujarat High Court<\/div>\n<div class=\"doc_title\">Acid vs Unknown on 22 March, 2011<\/div>\n<div class=\"doc_author\">Author: Akil Kureshi,&amp;Nbsp;Ms Gokani,&amp;Nbsp;<\/div>\n<pre>   Gujarat High Court Case Information System \n\n  \n  \n    \n\n \n \n    \t      \n         \n\t    \n\t\t   Print\n\t\t\t\t          \n\n  \n\n\n\t \n\t \n\t \n\t \n\t \n\t \n\t \n\t \n\t \n\t \n\t \n\t\n\n\n \n\n\n\t \n\nTAXAP\/1210\/2006\t 4\/ 4\tORDER \n \n \n\n\t\n\n \n\nIN\nTHE HIGH COURT OF GUJARAT AT AHMEDABAD\n \n\n \n\n\n \n\nTAX\nAPPEAL No. 1210 of\n2006 \n=========================================================\n\n \n\nACID\n&amp; CHEMICALS CO. - Appellant(s)\n \n\nVersus\n \n\nCOMMISSIONER\nOF INCOME TAX-I - Opponent(s)\n \n\n=========================================================\n \nAppearance\n: \nMR\nPRASHANT MANKAD for\nAppellant(s) : 1,MR JAGDISH H MEHTA for Appellant(s) : 1, \nNone for\nOpponent(s) :\n1, \n=========================================================\n\n\n \n\t  \n\t \n\t  \n\t\t \n\t\t\t \n\nCORAM\n\t\t\t: \n\t\t\t\n\t\t\n\t\t \n\t\t\t \n\nHONOURABLE\n\t\t\tMR.JUSTICE AKIL KURESHI\n\t\t\n\t\n\t \n\t\t \n\t\t \n\t\t\t \n\nand\n\t\t\n\t\n\t \n\t\t \n\t\t \n\t\t\t \n\nHONOURABLE\n\t\t\tMS JUSTICE SONIA GOKANI\n\t\t\n\t\n\n \n\nDate\n: 22\/03\/2011 \n\n \n\n \nORAL\nORDER<\/pre>\n<p>(Per<br \/>\n: HONOURABLE MR.JUSTICE AKIL KURESHI)<\/p>\n<p>1.\t\tThe<br \/>\nassessee has challenged the judgment of the Tribunal dated<br \/>\n27.08.2004, seeking to raise following questions of law:\n<\/p>\n<p>&#8220;(i)<br \/>\nWhether on facts and in law the Appellate Tribunal was right<br \/>\nconforming the addition made on account of unexplained cash credit<br \/>\nu\/s 68 of the Income Tax Act, 1961 in the case of the Appellant?\n<\/p>\n<p>(ii)  Whether<br \/>\nthe Appellate Tribunal has rightly appreciated the facts of the case<br \/>\nfor making section 68 of the Act applicable in the case of the<br \/>\nAppellant?&#8221;\n<\/p>\n<p>2.\t\tThe<br \/>\nissue pertain to unaccounted cash credits and effect of the same by<br \/>\nvirtue of Section-68 of the Income Tax Act, 1961.\n<\/p>\n<p>3.\t\tApparently,<br \/>\nupon examination of the Books of Accounts of the assessee, Firm, the<br \/>\nAssessing Officer found five cash credits, dated 01.04.1999, totaling<br \/>\nto Rs.30,00,000\/- in favour of five female members of the family.<br \/>\nSuch persons could not explain such credits, but, stated that one<br \/>\nShri. Jagdish Somabhai Patel, husband of one of them would offer<br \/>\nexplanation and it would be binding to all.  It appears that said<br \/>\nShri. Jagdish Somabhai Patel, in his statement, admitted that such<br \/>\namounts were not recorded in income of the firm.  He, further,<br \/>\nsuggested that such incomes pertained to previous year.  During the<br \/>\ncourse of hearing before the Tribunal, the learned Counsel for the<br \/>\nassessee, however, submitted that in the previous year also such<br \/>\nincome was not disclosed.\n<\/p>\n<p>4.\t\tThe<br \/>\nAssessing Officer, by his order dated 21.10.2002, added such amount<br \/>\nof Rs.30,00,000\/- as unexplained cash credit, under Section 68 of the<br \/>\nIncome Tax Act and framed assessment showing total income of<br \/>\nRs.36,24,261\/-.\n<\/p>\n<p>5.\t\tAssessee<br \/>\ncarried the issue in appeal before the CIT Appeals. Such appeal<br \/>\nhaving been dismissed, the assessee, further, approached the Tribunal<br \/>\nand the Tribunal, by the impugned order confirmed the order passed by<br \/>\nthe Income Tax Department and dismissed the appeal. The assessee has,<br \/>\ntherefore, preferred the present appeal.\n<\/p>\n<p>6.\t\tHaving<br \/>\nheard the learned Counsel for the appellant, assessee, we find that<br \/>\nthe Tribunal and two revenue authorities concurrently found that an<br \/>\namount of Rs.30,00,000\/- was found unaccounted, by way of cash<br \/>\ncredits in favour of the five female members, who were close<br \/>\nrelatives of the partners of the assessee, Firm.  They could not<br \/>\nexplain such credits, but, stated that one of the partners of the<br \/>\nFirm, who was also husband of one of the lady members, would be the<br \/>\nonly person who can offer an explanation and such explanation shall<br \/>\nbe binding to all.\n<\/p>\n<p>7.\t\tWe<br \/>\nfind that the revenue authorities and the Tribunal, on the basis of<br \/>\nthe evidence on record has come to a factual finding, which cannot be<br \/>\nstated to be perverse, especially, when Shri. Jagdish Somabhia Patel,<br \/>\nadmitted that such amount pertained to unaccounted income of the<br \/>\nFirm. Further, such income was not disclosed in the previous year<br \/>\nalso.\n<\/p>\n<p>8.\t\tConsidering<br \/>\nthe totality of the facts and circumstances of the case, we do not<br \/>\nfind any substantial question of law has arisen in this appeal. This<br \/>\ntax appeal is, therefore, DISMISSED.\n<\/p>\n<p>(AKIL<br \/>\nKURESHI,J.)<\/p>\n<p>(Ms.\n<\/p>\n<p>SONIA GOKANI,J.)<\/p>\n<p>Umesh\/<\/p>\n<p>\t\t   \u00a0\u00a0\u00a0<\/p>\n<p>\t\t   Top<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Gujarat High Court Acid vs Unknown on 22 March, 2011 Author: Akil Kureshi,&amp;Nbsp;Ms Gokani,&amp;Nbsp; Gujarat High Court Case Information System Print TAXAP\/1210\/2006 4\/ 4 ORDER IN THE HIGH COURT OF GUJARAT AT AHMEDABAD TAX APPEAL No. 1210 of 2006 ========================================================= ACID &amp; CHEMICALS CO. &#8211; Appellant(s) Versus COMMISSIONER OF INCOME TAX-I &#8211; Opponent(s) ========================================================= Appearance [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_lmt_disableupdate":"","_lmt_disable":"","_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[16,8],"tags":[],"class_list":["post-136505","post","type-post","status-publish","format-standard","hentry","category-gujarat-high-court","category-high-court"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.3 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Acid vs Unknown on 22 March, 2011 - Free Judgements of Supreme Court &amp; 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