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2017 (7) TMI 366 - HC - Income TaxAddition on unexplained credit under Section 68 - Held that:- Any sum which is found credited in the books of an assessee remains unexplained in the terms provided in Section 68 or the explanation is not found to be satisfactory by the Assessing Officer, the said sum can be charged to income tax as income of the assessee. Once it is determined that a sum which is credited to the account of the assessee is unexplained, then Section 68 gets triggered. It is well settled that under Section 68 of the said Act, once a credit in the books of assessee is found to be unexplained, a presumption is drawn against the assessee that the said credit is part of the income of the assessee. Of course, the presumption is rebuttable by the assessee by producing relevant cogent evidence in that behalf other than a bald statement about the nature of source of the credits in question. The stand adopted by the CIT(Appeals) was the appropriate one whereby he had directed that the addition of ₹ 18,00,704/- made by the Assessing Officer may be deleted but only after the assessment records of the partners were verified and checked and it was verified that the income had been properly assessed or accounted for in the hands of the partners. Therefore, this question is answered accordingly and the view taken by the Tribunal is set-aside and that of the Commissioner of Income Tax (Appeals) is upheld.
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