PR. COMMISSIONER OF INCOME TAX-14 vs BUNIYAD CHEMICALS LTD.

Judgment text excerpt

SAYYED Digitally by SAYYED signed SAEED AHMED ALI SAEED ALI 1 3.ITXA.1796.18.docx ALI Date: AHMED 2025.03.17 15:04:05 IN THE HIGH COURT OF JUDICATURE AT BOMBAY ALI +0530 ORDINARY ORIGINAL CIVIL JURISDICTION INCOME TAX APPEAL NO.1796 OF 2018 Principal Commissioner of Income-tax - 14 ) Room No.469, Aayakar Bhavan, ) M.K.Road, Mumbai 400020 ) Mumbai – 400 001. ) .. Appellant Versus M/s Buniyad Chemicals Ltd. ) Block H, Shri Sadashiv CHS Ltd ) 6th Road, Santacruz East, ) Mumbai 400055 ) .. Respondent ______________________________________________________ Mr. Suresh Kumar for the petitioner. Mr. Aditya Sharma i/by M.A.Narvekar for the respondent- assessee. ______________________________________________________ CORAM M.S. Sonak & Jitendra Jain, JJ. RESERVED ON: 5 March 2025 PRONOUNCED ON: 17 March 2025 JUDGMENT (Per Jitendra Jain, J):- 1. This appeal filed by the appellant-revenue for the assessment year (AY) 2009-10 challenges an order of the Income-tax Appellate Tribunal dated 30 May 2017 and same was admitted under Section 260A of the Income-tax Act, 1961 vide our order dated 5 February 2025 on the following substantial questions of law : “(a) Whether, on the facts and in the circumstances of the case and in law, the Hon’ble Tribunal was justified in restricting the addition made on account of unexplained cash credits u/s. 68 of the Act to 0.15% without appreciating that the assessee had failed to furnish satisfactory explanation with regard to the 2 3.ITXA.1796.18.docx identity of the parties and the sources and genuineness of the transaction ? (b) Whether, on the facts and in the circumstances of the case and in law, the Hon’ble Tribunal was justified in restricting the addition to the commission income at 0.15% without considering that the material found during the cour