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2015 (6) TMI 595 - AT - Income TaxUnexplained cash credits u/s.68 - AO disputes the creditor’s version on the issue of capacity/genuineness/creditworthiness - Held that:- This creditor had duly filed written confirmation and also placed on record his land ownership documents to depose in the assessee’s favour. A perusal of his statement demonstrates that one of his son studies in USA as well. He quotes the assessee to be his school friend. The document reveal the creditor and his family income from various sugar co-operatives as perennial and on routine basis. For instance, this creditor has derived sugarcane profits from assessment year 2000-01 to 2004-05. The same factual position is in respect of his other family members. In these circumstances, we do not agree with the lower authorities that this creditor has failed to satisfy all necessary conditions explaining capacity/genuiness/creditworthiness of the deposits in question. We also quote case law Muralidhar Lahorimal Vs. CIT [2005 (11) TMI 32 - GUJARAT High Court] holding that an assessee can be asked to prove the source of credit and not to prove the source of the source. Be that as it may, we have already held that the assessee’s creditor and his family had sufficient means from agricultural income so as to lend the impugned sums amounting to ₹ 3.3 lac deposited in the assessee’s account through cheque payments. The assessee’s arguments are accepted. - Decided in favour of assessee.
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