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2022 (6) TMI 662 - AT - Income TaxUnexplained credits u/s. 68 - identity of creditor not established - HELD THAT:- As it can be held that the settled proposition of law so far is that when identity of creditor is established then the assessee is not under obligation to establish the source of source of the creditor. It is for this reason that now an amendment has been brought in Section 68 of the Act and which is to take effect from 1st April, 2023 to apply in relation to the assessment year 2023-24 and subsequent assessment years, whereby it is provided that the nature and source of any sum, whether in form of loan or borrowing, or any other liability credited in the books of an assessee, shall be treated as explained only if the source of funds is also explained in the hands of the creditor or entry provider. In the case in hand even the source of source was explained or to say discovered by the Ld. AO during the remand proceedings but then by putting suspicion on the transactions of the source of source, the amounts in the hands of assessee have been considered to be unexplained credits u/s. 68 - Decided in favour of assessee.
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