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2010 (12) TMI 776 - HC - Income TaxAddition - Section 68 of the Act is intended to check undisclosed income being shown as deposits, so that real income does not escape assessment - Whenever cash deposits are found in the account books, burden is placed on the assessee to explain nature and source thereof and if no explanation is furnished or the explanation furnished is not satisfactory, the amount credited can be charged as income of the assessee. Assessing Officer gave due opportunity to the assessee to prove identity and creditworthiness of the depositors as well as the genuineness of the transaction - It was not difficult for the assessee to prove identity and status of the depositors - No effort was made by the assessee to discharge the burden statutorily placed on it in that regard - While deleting the addition, only ground which the CIT(A) has mentioned is that the deposits were as per Section 58A of the Companies Act, which could not be conclusive - The Tribunal also failed to appreciate the patent error in the view taken by the CIT(A) - Hence, answered in favour of the revenue.
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