Law:

Section:

Section 68 of the Income-tax Act, 1961 - Cash credits - Assessment years 1999-2000 and 2001-02 - Assessee showed long-term losses on account of sale of jewellery in its original returns of income filed for assessment years under consideration - Jewellery was shown to be sold to 'S' and 'JJ' - Said jewellery was earlier declared by assessee under VDIS - Subsequently, Assessing Officer by relying upon findings of Commissioner of Customs and Central Excise, doubted genuineness and existence of those two parties as they were not found at their given addresses and, accordingly, made additions on account of bogus cash credits - On further appeal, Tribunal found that assessee had produced all necessary information about these transactions and abovenamed parties supported with documents like their permanent account numbers, bank accounts, their trade-tax assessment orders, sale vouchers issued by them against claimed sales as well as their full addresses - Assessee had also produced buyers income-tax returns for relevant years in which profits on sale of jewellery shown in respective returns were accepted by department - Sale considerations were also paid by them to assessee through account payee cheques - It, therefore, held that assessee had furnished all necessary information supported with documents about transactions and parties which could have been expected from a prudent seller to establish genuineness of claimed sales and, accordingly, deleted said additions - Whether Tribunal had given cogent reasons for arriving at its factual conclusion and same needed no interference - Held, yes FACTS The assessee showed long term losses on account of sale of jewellery in its original returns of income filed for the assessment years under consideration. The jewellery was shown to be sold to 'S' and 'JJ'. The said jewellery was earlier declared by the assessee under Voluntary Declaration of Income Scheme, 1997. Subsequently, the Assessing Officer by relying upon the findings of the Commissioner of Customs and Central Excise doubted the genuineness and existence of those two parties as they were not found at their given addresses. The Assessing Officer initiated proceedings…

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