Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2015 (4) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2015 (4) TMI 785 - AT - Income TaxAddition u/s 68 of the Income Tax Act,1961 - Failed to prove creditworthiness of the creditors - Penalty u/s 271(1)(c) - Furnished inaccurate particulars of income - Held that:- It is settled principle of law that the assessee is required to prove genuineness of transaction, identity of creditors and creditworthiness of such creditors. In the absence of such proof, the Assessing Authority would be justified in making addition by invoking provisions of section 68 of the Act. In the case in hand, admittedly, the assessee could not furnish the evidences for proving creditworthiness of the creditors. Therefore, we do not find any infirmity in the order of the ld.CIT(A), same is hereby upheld. Thus, grounds of assessee’s appeal are rejected. - Decided against the assessee. Levy of penalty for the additions made u/s 68 - Held that:- There is no finding by the authorities below that the money belonging to the assessee has been circulated through the socalled creditors. The addition has been sustained on the basis that the assessee could not discharge its onus with regard to the creditworthiness of the creditors. - However, de hors the said provision, it is not possible to state with certainty that the said sums would be “concealed income” of the assessee for the year under consideration. - it cannot be said with certainty that the sum received from the creditors would be “concealed income” of the assessee. - Following the judgment of National Textiles [2000 (10) TMI 19 - GUJARAT High Court] and Jalaram Oil Mills [2001 (6) TMI 15 - GUJARAT High Court] and of CIT vs. Khoday Eswarsa and Sons [1971 (9) TMI 19 - SUPREME Court] it is held that penalty cannot be sustained. - Decided in favour of assessee.
|