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2015 (7) TMI 943 - AT - Income TaxAddition u/s 68 - Production of cash book - Verification by AO - Onus to prove - Held that:- assessee had indeed produced a cash book before the AO. - Once assessee produced a cash book, the onus was on the assessee to prove the entries therein. If it was unable to do so, AO could certainly invoke Section 68, even otherwise AO can invoke Section 69, if source of investment is not properly explained. Assessee cannot wriggle out of its obligation under law, by citing a reason that books of accounts were prepared under the instruction of the AO. No doubt, assessee had returned its interest income under the head “Other sources”. But application of Section 68 and Section 69 are not restricted to business income. It can encompass any type of income, as the facts may call for. Confirmation filed by the assessee at pages 22 to 36, did carry the address of the persons from whom it had received cash. None of these persons were examined by the lower authorities. Further, accumulation of cash in cash-book perse cannot be a reason for disbelieving the source of a deposit in Bank. An assessee might have myriad of reason for withdrawing cash from bank or keeping cash with him. Unless the distance of time is such as to make it unbelievable, in our opinion explanation of source should not be brushed aside. We are therefore, of the opinion, that rules of justice require a verification of the confirmation filed by the assessee, by the AO, by issuing proper summons. If the parties do not attend the summons on if the assessee fails to produce them, AO can take an adverse view and make an addition. For the limited purpose of this verification, we set aside the orders of the authorities below and remit the issue of addition of ₹ 12.00 lakhs back to the file of the AO. - Decided partly in favour of assessee.
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