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2017 (8) TMI 1244 - AT - Income TaxUnexplained Cash Credit - addition u/s 68 - Loans and Advances received - Held that:- There is nothing on record toward establishing the creditworthiness of the creditors and/or genuineness of the impugned credits. None of the confirmations in the present case bear the Permanent Account Numbers (PAN) of the creditors. Mere furnishing of a confirmation letter by a creditor, as it again well settled, does not prove the credit; the same would at best only establish the identity of the creditors, i.e., given that the Revenue has not required the assessee to prove the signatures on the confirmation letters, so that the same may be regarded as accepted. There is completely in contrast with the unsecured loans and advances furnished by the assessee during the course of assessment proceedings and as reflected in his Balance Sheet. No doubt, the ledger accounts of the relevant creditors are on record, and which are in agreement with the breakup of the loans as provided subsequently, but then it is only the assessee who can explain as to how its balance sheet, which purports to reflect its state of its affairs as at the year-end per its accounts, discloses a separate and different set of figures, including their profiling. In this regard, it is notable that all the loans/advances are received in cash, without as much as a cash receipt being issued, so the assessee could, at any time, change a creditor, or the amount ascribed to him, to suit himself. The Revenue is equally to blame for not questioning the assessee in this respect, which clearly undermines, nay, castigates, the assessee’s case, who only could explain the said differences. Assessee’s appeal is dismissed.
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