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2019 (8) TMI 739 - HC - Income TaxAddition u/s 68 - loans from relatives through banking channel - creditworthiness or genuineness of the transaction as suspicious - HELD THAT:- Apex Court in the case of Principle CIT vs. NRA Iron and Steel Pvt. Ltd. [2019 (3) TMI 323 - SUPREME COURT] and held that if the Assessee Company-Respondent failed to discharge the onus required u/s 68, the Assessing Officer was justified in adding back the amounts to the Assessee's income. In the case in hand, though the stated transaction of alleged loan is through bank but the assessee was not able to explain or substantiate the source; creditworthiness of the creditor and the genuineness of the transactions before the AO and before the CIT(A) and Tribunal. It is also not in dispute that cash deposits were made in the bank account of the creditor just before advancing the loan to the assessee and no explanation was forthcoming before the authorities below and even during the course of arguments before the Tribunal. Therefore, in view of the concurrent findings of fact recorded by the AO, the CIT(A) and the Tribunal that the assessee was unable to satisfactorily explain the source of investment in the said property at any stage, no error could be pointed out in the impugned orders which may warrant interference by this Court. The law is well settled that the onus of proving the source of a sum of money found to have been received by the assessee is on him and if he disputes the liability for tax, it is for him to show that the receipt is not income or it is exempted from tax. In the absence of such proof, the revenue is entitled to treat it as taxable income. - decided against assessee
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