Law:

Section:

Section 68 of the Income-tax Act, 1961 - Cash credits - Assessment year 1992-93 Where assessee-chit company paid chit amount to directors, and not to chit holders, it was payment by company to itself and amount was available with assessee itself and as such addition of such amount as undisclosed income of assessee was justified [In favour of revenue] Where the Assessing Officer made additions to the assessee chit company's declared income under section 68 in respect of the amount purported to have been paid to its directors as chit money, holding that payments were not in fact made and the amount remained available with the assessee as its income: Held that, the Tribunal found that the cheques were drawn in favour of the directors and not in favour of the respective chit holders. This did not amount to any payment to the chit holders at all. Therefore, the affidavits filed by them were against the tenor of the evidence obtained from the bank. They were the directors of the assessee-company which was private limited company, controlled by them. Their acts were the acts of the company and, therefore, payment to them amounted to the payment to company itself. Further, money received by the assessee on chits belonging to it merged with the money lying in its till. The amount was available with the assessee itself and payments were made representing expenditure which was never incurred. Thus, the amount was available with the assessee as undisclosed income which justified additions made by the Assessing Officer. CASES REFERRED TO CIT v. Lovely Exports (P) Ltd. [2008] 319 ITR (St.) 5 (paras 6, 7). Pankaj Jain for the Appellant. JUDGMENT Delay condoned, subject to just exceptions. Heard on the merits. 2. This appeal has been preferred by the assessee under section 260A of the Income-tax Act, 1961 (for short, "the Act") against the order dated September 22, 2006 of the Income-tax Appellate Tribunal, Delhi Bench-B, New Delhi in I. T. A. No. 1905(Delhi) of 2003 for the assessment year 1992-93, proposing to raise the following substantial questions of law : " (i) Whether on the true and correct interpretation of the provisions of sections 69B, 69C the amount can be…

Deprecated: trim(): Passing null to parameter #1 ($string) of type string is deprecated in /home/digixyei/sldsystempk.com/view/master-layout/view_case.php on line 492