2020 (5) TMI 403 - AT - Income Tax

Unexplained cash credit u/s 68 - discharge of initial onus or not - providing identity of creditors and creditworthiness - HELD THAT:- Assessee has discharged the initial onus which lay on him in the terms of section 68 of the Act by providing identity of creditors and same has not been doubted by the AO also. Assessee has proved the creditworthiness by way of filing ITR returns, bank account, balance sheet, confirmation of the creditors.

Assessee is not expected to prove the genuineness of cash deposits in bank accounts of those e creditors because under the law the assessee can be asked to prove source of credit but not the source of the source as held in the case of Orient Trading Co. v. CIT [1962 (8) TMI 69 - BOMBAY HIGH COURT]

Therefore, in such a situation and considering above fact and finding , we are in complete agreement with the reasoning given by the Ld. CIT (A) that when full particulars, inclusive of the confirmation with name, PAN, copy of Income-tax returns, balance sheet Profit & Loss Account computation of income are furnished and same reflected in their books of accounts - addition so made is rightly deleted by the Ld. CIT (A). In view of these facts and circumstances, we do not find any infirmity in the order of CIT (A), accordingly, same is upheld. Accordingly, all the grounds of appeal of as taken by the Revenue are therefore, dismissed.