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2022 (5) TMI 724 - ITAT RAIPURUnexplained cash credit u/s.68 - primary onus to substantiate the authenticity of the credits appearing in the “books of accounts” is cast upon the assessee, failing which the same is to be treated as an unexplained cash credit in his hands - HELD THAT:- Assessee had failed to substantiate the identity and creditworthiness of the lenders, as well as prove the genuineness of the loan transactions in question, therefore, we are of the considered view that the AO had rightly held the loan transactions in question as unexplained cash credits within the meaning of section 68 of the Act. Before the CIT(Appeals), though the assessee had placed on record PAN No. of one of the lender, viz. Ms. Seema R Mutreja, however, the same in our considered view would not suffice for substantiating the ‘nature’ and ‘source’ of the credit appearing against her name in the “books of accounts” of the assessee. In so far the claim of the Ld. AR that the lower authorities had erred in law in not exercising the power vested with them u/s.131(1) of the Act i.e, by not summoning the respective lenders despite specific requests of the assessee, the same we are afraid does not find favor with us. As is discernible from the records, the assessee had failed to place on record any documentary evidences which would substantiate the veracity of the loan transactions in question and would suffice to conclude that the primary onus that was cast upon it to substantiate the authenticity of the loan transactions was duly discharged by him. As a matter of fact, the assessee had been taking shifting stands before the lower authorities and had tried to shift the burden of proving the authenticity of the loan transactions upon the department. Now when the assessee before us had failed to discharge the primary onus that was cast upon it as regards proving the ‘nature’ and ‘source’ of the loan transactions in question, therefore, the raising of a request by him, and that too for the very first time in the course of the proceedings before the CIT (Appeals) did not merit acceptance. If the assessee in the course of the assessment proceedings would have placed on record any material which would have evidenced the authenticity of the loan transactions in question, then, in our considered view, the lower authorities would have been obligated to exercise the power u/s. 131(1) of the Act in order to dispel doubts, if any, as regards the authenticity of the loan transactions in question. However, as the assessee had in the course of proceedings before the lower authorities adopted an evasive approach and failed to place on record any material/document substantiating the authenticity of the loan transactions in question, therefore, we are of the considered view that no infirmity arises from non-exercise the power u/s. 131(1) of the Act by the lower authorities, which as observed by us hereinabove, was sought by the assessee for the very first time in the course of the proceedings before the CIT(Appeals). We do not find any infirmity in the view taken by the lower authorities who had rightly held the loan transactions in question as unexplained cash credits within the meaning of Section 68 - Decided against assessee.
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