2011 (8) TMI 476 - DELHI HIGH COURT

Unexplained cash credit - under the provisions of Section 68 - genuineness of the transactions and the creditworthiness of their creditors - Whether, the Income Tax Appellate Tribunal was justified in sustaining Rs. 8,24,000.00 on account of unexplained cash credit under the provisions of Section 68 of the Income Tax Act, 1961 - Held that:- In the event the revenue still had a doubt with regard to the genuineness of the transactions in issue, or as regards the credit worthiness of the creditors, it would have had to discharge the onus which had shifted on to it. A bald assertion by the A.O. that the credits were a circular route adopted by the assessee to plough back its own undisclosed income into its accounts, can be of no avail. The revenue was required to prove this allegation. An allegation by itself which is based on assumption will not pass muster in law. - If the A.O. was genuinely interested in establishing the allegations made in the assessment order, which is, that the assessee had routed its own money through the device of creditors and sub-creditors, it ought to have given sufficient time to the said noticees to produce relevant material before him. These are aspects which the ITAT did not examine. -