Section 68 of Income Tax Act, 1961—cash credits—In the instant case, the core issue which arises for consideration is as to whether explanation offered by the assessee with respect to the nature and source thereof, was in the opinion of the Assessing Officer satisfactory or not?

Held that— we notice that the authorities below found the explanation furnished by the assessee not to be satisfactory. What was found peculiar, which fact remains unexplained, as to why and how should be their transactions, in cash, only in a particular month of the only two years. Such transactions are of huge amount. Assuming that they were sold across the counter on test market basis, even then such sales ought to have been spread throughout the year. It is not the case of the assessee that the product was manufactured or sold for seasonal consumption or that such sales could have been affected only in the particular months of the respective years. The satisfaction of the officer no doubt has to be based on the material so placed by the parties, which in the instant case is there. Formation of opinion has to be after accounting for all the factors and that too on objective consideration of which we have no doubt.
As such, the questions of law answered accordingly and we find no merit in the present appeals which are disposed of in the aforesaid terms.[M/S J.M.J. ESSENTIAL OIL COMPANY VERSUS COMMISSIONER OF INCOME TAX, SHIMLA] [2018] [7] [ITCD Online] [3] [ HIMACHAL PRADESH HIGH COURT]