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2016 (4) TMI 210 - AT - Income TaxAddition u/s 68 - Association of persons (AOP) or not - CIT(A) treating the cash as loan/deposits and adding to total income as non genuine loan/deposit u/s 68 - Held that:- As in the eyes of law there is no evidence which the assessee has shown about the legal existence of an AOP. Income-tax Dpartment can assess an entity as an AOP only if it has a separate PAN and there is no mechanism in the statute for including the income of an AOP along with return of an individual. Therefore, we do not find any basis in the submission of ld. AR that there actually existed any AOP and therefore, the cash received by the assessee from his relatives cannot be treated as a contribution by the relatives towards the share trading business under a common AOP. The assessee has relied on various judicial pronouncements. However, the facts discussed in these judgments are different from the facts of the case of assessee and therefore, we dismiss the contentions of assessee for accepting the existence of an AOP. We find that assessee has not been able to prove the identity, creditworthiness and genuineness of the transactions of cash loan received from the above three parties and merely seems to be an adjustment to prove the source of cash in the books of account. For the lack of requisite evidences and information, we are unable to accept the contentions of ld. AR and we are of the opinion that ld. Assessing Officer has rightly made the addition u/s 68 of the Act on account of cash credit for the sum received from above said three parties. - Decided against assessee.
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