Unexplained cash credit u/s 68: If the Department has accepted the factum of repayment, the additions under section 68 is not sustainable in law.

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Unexplained cash credit u/s 68: If the Department has accepted the factum of repayment, the additions under section 68 is not sustainable in law.

ITAT RAIPUR :-
DCIT-1 (1) , RAIPUR (CG). VERSUS SINGHANIA BUILDCON PVT. LTD.-
No.- ITA No.133/RPR/2016,
Dated.- September 23, 2021
Issue was with regards to addition on account trade advance received by the assessee.
CIT(A) after obtaining the remand report from the A.O. affirmed the fact that the booking advances received by the assessee have been duly refunded which fact has also been accepted by the prospective buyers.
ITAT held that AO has not made any attempt to rebut the claim of the assessee.
The confirmations were filed by the assessee to support the factual position.
 The assessee has placed the facts which are apparent in nature for which no rebuttal has been done.
The Hon’ble Gujarat High Court in the case of CIT vs. Ayachi Chandrasekhar Narsangji, [2013 – GUJARAT HIGH COURT], CIT s. Mahavir Crimpers, [ GUJARAT HIGH COURT] have held that when the Department has accepted the factum of repayment, the additions under section 68 is not sustainable in law.
Similar view has been expressed in CIT vs. Karaj Singh [2011  – PUNJAB AND HARYANA HIGH COURT] & Panna Devi Chowdhary vs. CIT,[1994 – BOMBAY HIGH COURT].
Overwhelming fact of refund of booking advances which transcends all other considerations coupled with the confirmations from prospective buyers, the CIT(A), in our view, has rightly concluded the issue in favour of the assessee.
The view of the CIT(A) is based on sound legal principle in the facts of the case and cannot be dislodged.
Thus, we see no merit in the grievance of the revenue.i
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