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2013 (10) TMI 13 - HC - Income TaxCash Credit - Addition u/s 68 - creditor’s creditworthiness - genuineness of transactions – Held that:- The existence of the creditor’s creditworthiness is one of the most important factors - After analyzing the materials produced by the assessee, found that the so-called two creditors had no creditworthiness and this is reflected from the accounts as well as from the tax returns - It is impossible to accept that this transaction is genuine when the income tax returns show a meager amount of Rs.1.00 lakh and odd and how the creditors could advance huge sums of Rs. 5.00 lakhs each; and wherefrom these huge amounts have come is not clear - Materials produced before the revenue officials by the assessee were not sufficient to adjudge that the assessee has discharged his burden - When the material produced before the revenue officials are good enough to come to conclusion that there is no genuine transaction of lending and borrowing of money, no further or other material is required – Decided in favor of Revenue.
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