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2014 (1) TMI 392 - AT - Income TaxWhether the amount of credit u/s. 68 is income from business or income from other sources - Held that:- Following Laxmichand Baijnath vs. CIT [1958 (11) TMI 3 - SUPREME Court] - If credits are found in business account of the assessee and the explanation as to the nature and source of account is rejected by the Income-tax authorities, such authorities are entitled to treat the credit as income from business - It cannot be interpreted to mean that in all cases such credits must be treated as income from business - Merely because the assessee is running a business in which are found certain unexplained cash credits, it does not necessarily follow that such credits represent suppressed business receipts and there would be no error of law in regarding the unexplained cash credits as income of the assessee from some independent and unknown sources unless there are strong reasons for connecting the unexplained cash credits with known sources of income of the assessee, there would be no alternative to treating them as income from other sources - When the assessee pleads that the impugned cash credits came out of suppressed profit, it is for him to prove that it is so. The income resulting on account of additions u/s. 68/69 of the Act cannot be considered as income derived from export activities though it is income of export oriented unit unless there is clear evidence that it represents business receipts - The assessee's business is carrying on of export activities in granite slabs and not dealing in unexplained credits - The assessee is not entitled for deduction u/s. 10B of the Act on account of additions made u/s. 68/69 of the Act - Decided in favour of Revenue.
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