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2005 (7) TMI 36 - ALLAHABAD HIGH COURT"Whether Tribunal was correct in holding that the gifts received by the applicant were not genuine and further that they fall under section 68 of the Income-tax Act and were thus correctly added to the income of the assessee?" - It is a settled principle of law that under section 68 of the Act if any amount is found credited in the books of account of the assessee the burden lies upon the assessee to prove its nature and source. While proving the same the assessee has to prove the identity of the person, genuineness of the transactions and creditworthiness of the person who has given the money. In the present case, though the identity of the person, who has given the money has been established the assessee has failed to prove the creditworthiness of those persons making the payment of such amount to the assessee. All the authorities found that both the persons, who are alleged to have made the payment had no source and capacity to make such payment - we answer the question referred to us in the affirmative, i.e., in favour of the Revenue and against the assessee
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