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2017 (8) TMI 1505 - AT - Income TaxUnexplained cash credit u/s 68 - cash received as advance for sale of ancestral property - Unproved creditworthiness of the creditor - Held that:- Creditor has, not filed any return of income, did not have PAN, did not remember details of his bank account, did not remember date of transaction of property. The creditors also did not produce copy of agreement, sale purchase deed of the property or any other relevant documents relating to property in question. Even the sale consideration of JCB Machine was made in cash. Even the said property was not reflected in the books of the assessee. The said entry of ₹ 10,70,000/- was found credited in the books of M/s Surya Roshni Limited Bahadurgarh. Thus it was found that the entry of cash credit found in the books of the assessee, the identity was of a different person and not M/s Surya Roshni, the creditworthiness of the creditor could not be proved in as much as no evidence was brought on record and the genuineness of the transaction also could not be established by any documentary evidence. The action of the AO in treating the said credit of ₹ 10,70,000/- as income from undisclosed sources u/s. 68 was rightly confirmed by the Ld. CIT(A). With regard to addition of ₹ 4,00,000/- is concerned, find that fact remains that cash was deposited on the same date on which cheque was issued to the assessee on 9.12.2012. In such circumstances, the onus is on the assessee to prove the genuineness of the transaction and the creditworthiness of the creditor. AO has recorded that opportunity to prove the creditworthiness of the creditor was granted to the assessee. However, the assessee failed to avail of such opportunity. The assessee has not produced any additional evidence to prove the genuineness or creditworthiness of the creditor during appeal proceedings as well. Cash was deposited in the account of the creditor on the same date on which cheque was issued and also the fact that income declared by the creditor is only ₹ 64,007/-, it was held that the creditworthiness of the creditor is not established. The action of the AO in adding ₹ 4,00,000/- received from Smt. Urmila Devi as unexplained cash credit u/s. 68 was rightly confirmed by the CIT(A) - Decided against assessee.
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