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2022 (9) TMI 721 - AT - Income TaxUnexplained Cash Credit u/s. 68 - cash deposits in the bank as unexplained - as about the source of cash deposit assessee failed to offer any explanation - HELD THAT:- The provisions of Section 68 of the Act fastens the liability on the assessee to provide the identity of the lenders, establish the genuineness of the transactions and creditworthiness of the parties. These liabilities on the assessee were imposed to justify the cash credit entries u/s 68 in the case of CIT Vs. Precision Finance (P) Ltd[1993 (6) TMI 17 - CALCUTTA HIGH COURT]. Undoubtedly, there were cash deposits in the bank account of the assessee and the onus lies upon the assessee to justify the source of such cash deposits in her bank account. From the preceding discussion, we find that the assessee during the appellate proceedings has justified the source of cash deposits in her bank account. Pattern of withdrawing the cash from the bank from the accounts of different companies as well as from her own account and re-deposit the same in the bank appears to be very of unusual/ abnormal and the same is not free from the doubts. But no adverse inference can be drawn based on the doubts and surmise. The inference of the AO, how strong it is, but is of no consequence until and unless it is based on some concrete materials. In the present case, the necessary bank statements and explanation were furnished by the assessee to justify the source of cash and no iota of doubt was pointed out in such documents. To our understanding, such documents are primary documents which cannot be ignored while deciding the issue on hand. Thus, the assessee cannot be penalized if he was prevented from filing the secondary documents due to unavoidable reason such as cash book and other details. Thus as assessee has duly discharged her onus imposed under the provisions of Section 68 of the Act by furnishing the necessary details with respect to the identity, creditworthiness of the parties and genuineness of the transactions. Accordingly, we hold that no addition is warranted in the given facts and circumstances - Decided in favour of assessee.
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