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2012 (10) TMI 601 - ALLAHABAD HIGH COURTAddition on account of Unexplained cash credit – Unsecured loan from trust - Assessee receive unsecured loan from eight different trusts – Managing Director of company & trustee of all eight trusts are same person – The dates of donations to the trusts and advance of loans by the trusts to the assessee are the same - Held that:- We have no doubt that Managing Director has created these trusts and was depositing the amount in cash to be given to the company as loans. He did not produce the trust deeds, the author of the trusts or beneficiaries of the trusts. The method and manner, in which he was depositing the amount in the accounts of the trusts, and was transferring the same on the same day by way of cheques to the company, of which he was majority shareholdings along with his associates, clearly establishes that he was playing a fraud with the revenue, and thus the AO and CIT(A) fully justified in finding that the burden of proof did not shift on the revenue and in adding to the amount to the income of the assessee. Where the source is the assessee himself, he is required to prove the source of the source to verify the transactions. It will be open to the Income Tax department to proceed against the trusts in accordance with the law. The questions of law are decided in favour of revenue and against the assessee. In favour of revenue
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