Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2016 (9) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2016 (9) TMI 1496 - AT - Income TaxUnexplained cash credit u/s. 68 - establishment of identity of the creditor, his capacity to advance the loan and the genuineness of the transaction - HELD THAT:- AO in the present case has found fault with the capacity of the donors to give the gift in question to the Assessee. As we have already observed, the burden cast on the assessee stands discharged the moment the assessee proves the identity of the creditor, his capacity to lend and the genuineness of the transaction. The assessee cannot be further required to prove the source of the source of the money out of which gift was given as laid down by the Hon’ble Madras High Court in the case of S.Hastimal Vs. CIT [1962 (12) TMI 60 - MADRAS HIGH COURT]. In the present case, as already seen that the donors been accepted. The source of the donors cannot therefore be gone into in the assessment of the Assessee. Therefore, of the view that the addition made u/s.68 in the facts and circumstances of the present case cannot be sustained. The same is directed to be deleted. The appeal of the Assessee is allowed.
|