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2012 (10) TMI 1254 - AT - Income TaxUnexplained Cash Credits u/s 68 - Genuineness of sales along with the identity of the buyers was argued to be in dispute. Onus to prove was casted upon the assessee to explain the credits in the books which was duly discharged by him by presenting all details along with regular books of accounts, sale invoices, vouchers, receipt books etc. Still addition was made by AO u/s 68 on the ground that books of purchasers didn't contain any entry regarding such transactions. HELD THAT:- CIT(A) has rightly come to the conclusion that the addition made by the Assessing Officer u/s 68 of the Act by considering the sale proceeds as cash credits cannot be sustained. AO has not doubted the genuineness of the purchases and when the stocks tally has been accepted by the AO then there is no reason to doubt the sales. Also, if the purchasing dealers did not account for the transaction in their books, the assessee cannot be penalised. The decision in the case of LAKHMICHAND BAIJNATH VERSUS COMMISSIONER OF INCOME-TAX, WEST BENGAL [1958 (11) TMI 3 - SUPREME COURT] was referred where it was held that amount credited in business books can normally be presumed as business receipts. The expression “books” with respect to s.68 is concerned, the Hon’ble Punjab & Haryana High Court in the case of SMT. SHANTA DEVI VERSUS COMMISSIONER OF INCOME-TAX [1987 (10) TMI 26 - PUNJAB AND HARYANA HIGH COURT], held that such books denotes books of assessee himself and not of other parties. Addition made by the AO u/s 68 of the Act by considering the sale proceeds as cash credits cannot be sustained. Decision in favour of Assessee.
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