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Judgment
JUDGMENT: (per Hon'ble Sri Justice P.Sam Koshy)
Heard Sri A.V.Siva Kartikeya, learned counsel representing Sri A.V.Krishna Koundiya learned counsel for the appellant and Ms.B.Sapna Reddy, learned Senior Standing Counsel for Income Tax Department, for the respondent and perused the record.
The instant appeal is one which has been preferred by the appellant assailing the order of the Income Tax Appellate Tribunal (for short "the Tribunal"), dated 31.08.2007, passed in I.T.A.377/Hyd/04 for the Assessment year 1996-97. In respect of the same Assessee, a similar order was passed by the Tribunal for the Assessment year 1999-2000, where the Tribunal remitted the matter back for fresh consideration to the Assessing Officer to ascertain the validity of the loans advanced by the appellant in the year 1985-86. Upon remand, the Assessing Officer had decided the matter against the Assessee and which was confirmed by the Appellate Authority also. However, they travelled to the Tribunal, the learned Tribunal vide its order dated 30.09.2009 decided the issue in favour of appellant holding that the Assessee was able to produce the materials to show that there were 86 creditors from 1985-86 itself and the payment of interest was also recorded in the Books of Accounts and the Tribunal, therefore, reached to the conclusion that it cannot be assessed as undisclosed income. The Appeal stood allowed and which has not been challenged further by the Revenue.
Given the said finding of the Tribunal for the Assessment year 1999-2000, we are of the considered opinion that the instant appeal being for the preceding period of 1996-97, the same has to be taken and the impugned order of the Tribunal passed in this case dated 31.08.2007 becomes unsustainable.
In the light of the finding of the facts given by the same Tribunal for the subsequent year vide its order dated 30.09.2009, the instant Appeal, therefore, deserves to be allowed on this ground itself.
Accordingly, it is ordered that the order dated 31.08.2007 is set aside.
The Appeal stands allowed. The question of law stands answered in favour of the Assessee and against the Revenue. There shall be no order as to costs.
Consequently, miscellaneous petitions pending, if any, shall stand closed.