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2015 (7) TMI 835 - AT - Income TaxUnexplained cash credit - addition u/s 68 - Held that:- The creditors given loans to the assessees through Demand Draft and the assessees furnished the details of the same alongwith confirmation letter and also explained mode of transaction, which is through banking channel and also repaid the said loan through banking channel. Considering these facts, in our opinion the assessee herein had discharged their onus placed on them. The fact that credit entry shown in the name of a person other than the actual lender of the money would not by itself, be relevant where cogent evidence is independently available. Once the existence of the creditors is proved and such person owed the credits which are found in the books of accounts of the assessees, the onus stand discharged and the assessee is not further required to prove the source of income from which the creditors would have acquired the money and, therefore, addition u/s.68 cannot be sustained in the absence of anything to establish that source of creditors deposit, flew from the assessee itself. In our opinion, creditor having appeared before the Assessing Officer in response to the summons issued u/s.131 of the Act before the Assessing Officer and confirmed by filing of confirmation letter, the transaction cannot be doubted. The assessee discharged onus placed upon them by establishing the identity of the creditor, his credit worthiness, genuineness of the transaction. Being so, in our opinion the addition made in this case u/s.68 is unwarranted. The same is deleted. - Decided in favour of assessee.
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