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2022 (6) TMI 600 - AT - Income TaxAddition u/s 68 - Assessee failure to identity and creditworthiness of the person from whom credit is shown to have been received and also to establish genuineness of the transaction - HELD THAT:- The assessee in its books of accounts has shown receipt of ₹2.00 crores from M/s Innovative Spinning and Knitting Private Limited. Further the assessee has shown this amount as transferred in the name of another two entities. All these three entities were not found at the addresses provided by the assessee, during verification by the Assessing Officer invoking section 133(6) of the Act. On being asked, the assessee also failed to produce the director of M/s innovative spinning and knitting Private Limited. Even during appellate proceedings, the assessee failed to produce him before the lower authorities. In our opinion, by way of merely stating that said person was absconding and therefore he could not be produced before the AO is not sufficient to discharge onus under section 68 of the Act. It is the onus on the assessee to explain the identity and creditworthiness of the person from whom credit is shown to have been received and also to establish genuineness of the transaction. In the facts and circumstances of the case, the assessee has failed to substantiate with evidences to explain all the three ingredients of section 68 therefore the CIT(A) is not justified in deleting the addition. Accordingly, we set aside the order of the Ld. CIT(A) on the issue in dispute and uphold the order of the Ld. Assessing Officer - Decided in favour of revenue.
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