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2020 (10) TMI 515 - HC - Income TaxAdditions u/s 68 - burden of proof - Whether explanation offered by the assessee to be non satisfactory? - HELD THAT:- Onus is on the assessee to explain the sums credited in the books of the assessee. If the explanation offered by the assessee about the nature and source is acceptable to the AO, then there can be no additions. If the AO finds the explanation offered by the assessee to be non satisfactory, the sum so credited may be charged to income tax as an income of the assessee. Admittedly in the instant case, the assessee has provided the explanation, such explanation was found acceptable by the AO for the previous and subsequent Assessment Years. AO did not record a specific note of his satisfaction / dissatisfaction with regard to those three persons. Assessee is non-suited solely on the ground that Mr.Naninar Mohammed did not appear and other two persons did not respond. The fact remains that the notice sent by the AO to Mr.Naninar Mohammed returned with a postal endorsement 'left' and there appears to have been no attempt made to summon the said person by following other modes of substituted service - Appropriate view that should have been taken is to take note of the genuinity of the assessee and the decision of the Assessing Officer in the assessee's own case for the earlier and subsequent assessment years. - Decided in favour of the appellant / assessee.
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