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2014 (9) TMI 703 - HC - Income TaxNon-speaking order by Tribunal or not - Unexplained cash credits u/s 68 – Held that:- Section 68 empowers the AO to treat the income credited in the books of accounts of the assessee for any previous year if there is no plausible explanation by the assessee about the nature and source of such income or if the explanation given is not satisfactory - Once it is explained, it is for the AO to consider the same and form an opinion about the genuineness of the whole transactions - Such an opinion must be based on cogent evidence i.e. material produced by the assessee - insofar as the identity is concerned, the assessee could not produce the PAN Number of both the parties - The purpose for which the loans were taken, have not been spelt out by the assessee in his affidavit or otherwise - The Paying back of the so called loans by way of an Account payee cheque is not conclusive, more so, if the aspects narrated above, are considered cumulatively - The facts have to be seen in the context of Section 68 of the Act - Suffice to state, the identity of the parties have not been proved, their creditworthiness not established and genuineness of transactions not demonstrated - CIT(A) and the Tribunal have committed an error in not properly approaching the issue which fell for their consideration out of the findings rendered by the AO - they have committed substantial error of law in interfering with the order of the AO without any proper basis – thus, the order of the Tribunal is set aside and the matter is remitted back to the AO – Decided in favour of revenue.
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