Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2013 (11) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2013 (11) TMI 1277 - ITAT AGRAAddition of Unexplained Credit u/s. 68 - Held that:- CIT(A) was justified in confirming the addition u/s. 68 of the IT Act – Relying upon Smt. Suman Gupta vs. ITO [2012 (10) TMI 741 - ITAT AGRA] - the assessee has not adduced any sufficient evidence before the authorities below to prove the creditworthiness of the creditors and genuineness of the transactions in the matter - the assessee has not satisfied the essential ingredients of section 68 of the IT Act. The assessee has failed to prove the creditworthiness of all the creditors and no source of their income has been filed - At the best the assessee is able to prove identity of the creditors, but the assessee failed to prove the genuine credit in the matter. All the creditors have been rightly found to be men of meager means and no source of income have been filed to prove that they were having sufficient funds or savings in order to give loans to the assessee - On verification of the bank account of the depositors, it was specifically found that there were no sufficient funds available in their bank account and they were having only small bank balance, which was even not sufficient to meet out their household expenses or day- to-day requirements - it is unbelievable to accept the contention of the assessee that said persons were having creditworthiness to advance any loan to the assessee - The documents produced by the ld. counsel for the assessee in the paper book merely prove the case of assessee superficially, which is far from reality or truth. Their affidavits could not be subjected to examination by the AO - The affidavit is like an Examination-in-Chief and unless the deponents of the affidavits have been produced, the same could not be subjected to cross-examination and such affidavits in their cases cannot be relied upon to explain their creditworthiness and genuineness of the transactions. assessee failed to prove creditworthiness of all the creditors and genuineness of the transactions in the mater - no interference is called for in the orders of the authorities below - Burden upon the assessee has not been discharged in accordance with law – Decided against Assessee.
|