Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2018 (3) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2018 (3) TMI 1401 - AT - Income TaxAddition u/s 69/69A - receipt in the bank account - AO observed that the sum was not accounted in the books of account - onus to prove the nature and the source of deposit in his bank account - Held that:- The controversy raised however is without any substance in law, as the impugned sum stands admittedly received by the assessee, duly credited to his bank account, so that even if not credited in his books of account - which in fact he has shown to, the assessee is yet obliged u/s. 69/69A to furnish a satisfactory explanation as to the nature and the source of deposit in his bank account. Additions u/s 68 - genuineness of the credit transaction - Held that:- The creditor at the time of the impugned credit, in fact already extended ₹ 3.95 lacs to the assessee during the relevant year itself. Though it is only the credit of ₹ 9 lacs that is under examination, the creditors’ – who is also maintaining books of account, capacity has to be shown with reference to the entire sum. A credit may not necessarily arise from the creditors’ current year income, and may well be from his capital, hereinbefore employed in some other asset/s, since realized. At the same time, it may be that a creditor may be merely a conduit for funds, the source of which is thus located in another person/s, so that the creditor is only an ostensibly source, and does not have the capacity to lend or assume (financial) risk. We have already stated that the identity is proved, and there is nothing on record to doubt the genuineness of the transaction. The matter, therefore, for examination of the capacity shall have to necessarily travel back to the file of the AO. To the extent the aspect of capacity is linked to genuineness, which may have some overlap, our finding as to genuineness may be regarded as reserved. The primary burden toward establishing the credit would be on the assessee. The AO shall decide issuing definite finding/s of fact, based on the material on record.- Assessee’s appeal is allowed for statistical purposes.
|