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2016 (6) TMI 92 - AT - Income TaxAddition u/s 68 towards unexplained credits - proof of creditworthiness - Held that:- On verification of the bank statement filed by the assessee, we noticed that the parties have deposited cash on the same day when the money has been transferred to the assessee bank acount. The parties have not explained how a person working in abroad has deposited cash in to the normal savings Bank account maintained in India, when he is not permitted to operate normal bank account in India. Similarly, his wife Smt. G. Vijaya Lakshmi stated to have advanced the loan out of her husband’s savings. On verification of her bank statement, we find that the same day she had deposited cash and transferred the money to the assessee bank account. Except these two transactions, she had not made any substantial transactions in her bank account. We further observed that she has not assessed to income tax and she does not have any source of income to advance loan to the assessee. When she does not have any source of income to justify the loan of ₹ 5 lakhs, the assessee has failed to discharge his initial burden of proving creditworthiness of the parties. The creditors have deposited cash and transferred the same to the assessee bank accounts. Except these two transactions, they are not having any considerable bank transactions in their bank account. Under these circumstances, we are of the opinion that the assessee has not discharged its burden by proving the creditworthiness of the parties. We further observed that although the parties have filed the confirmation letters, the other ingredients of the section i.e. the genuineness of the transactions and creditworthiness of the parties remain in doubtful. The assessee has failed to prove the transaction to be genuine and also failed to establish the capacity of the creditors to advance loan to the assessee. Therefore, we are of the opinion that the CIT(A) has rightly upheld the additions made by the A.O.- Decided against assessee
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