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2016 (3) TMI 1358 - AT - Income TaxAddition u/s 68 - Unsecured cash credit - HELD THAT:- The assessee has produced the copies of contract note, money was received through banking channel from sale of shares, purchases of earlier years were not doubted. Dematting was done by the assessee, sale was affected, thus, there is no reason to interfere with the finding of CIT(Appeals), thus, it was rightly held that the addition made u/s 68 of the Act cannot be sustained and also the resultant disallowance of commission at the rate of 5% made by the AO Even otherwise, for making addition u/s 68 of the Act, there has to be credit of amounts in the books of the assessee and if the assessee offers no explanation about the nature and source of such credits, then, the some so credited may be charged to tax as income of the assessee. However, in the present case, the assessee has offered its explanation and if AO is still not satisfied with such explanation, onus shifts upon him to prove otherwise. The assessee’s burden is confined to prove creditworthiness of the creditor with reference to the transaction found in the books of the assessee. In the present appeal, the identity of the creditor is not in doubt, the sale proceeds were received through banking channel, no adverse material was brought on record by the Assessing Officer to substantiate his presumption, the shares remained in the demat account of the assessee for more than twelve months, sold through recognized stock exchange on which STT was paid, the quotation of the aid scrips were available on the exchange, thus, the appeal of the Revenue is having no merit, consequently, dismissed.
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