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2018 (12) TMI 290 - HC - Income TaxAddition of “cash credit” u/s 68 - “advance” towards allotment of shares - Held that:- By the time the assessment was taken up, the investor died. The daughter-in-law of the deceased submitted that her mother-in-law would have made such investment out of cash in hand. In fact, the specific submission made by the daughter-in-law before the AO was that her husband, the son of the investor, died in the year 1965 and her father-in-law died in 1975. The mother-in-law is said to have been carrying on small chitty and financing business. It is very unlikely that a person carrying on small chitty and financing business could raise ₹ 2, 00, 000/- as advance for investment in a Company in the year 1992. We, hence, find that the essential question raised is on facts as to the satisfactory nature of the explanation offered. We do not think that the reliance placed on the decision of the Delhi High Court can be sustained especially in view of the fact that Section 68 was not noticed by the STELLAR INVESTMENT LIMITED [1991 (4) TMI 100 - DELHI HIGH COURT]. We, hence, refuse to answer the questions of law, on the ground that there was no positive evidence tendered by the assessee as to the source of the amounts shown in the accounts and the explanation offered was also found to be not satisfactory.
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