Home Case Index All Cases Income Tax Income Tax + HC Income Tax - 2018 (8) TMI HC This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2018 (8) TMI 860 - HC - Income TaxAdditions u/s 68 - majority of the deposits received from the public and the agents - onus to prove source of funds - Held that:- Merely because there was a permission granted under the Companies Act to accept deposits from the public, it does not necessarily follow that the deposits shown are really those received from the members of the public or from the agents. Section 68 is a provision which seeks to ensure that the income received by an assessee is not fully disclosed, by a ruse employed of showing it as credits from depositors which are not genuine and the identity of such depositors are not verifiable. The Tribunal has erred insofar as the finding that the fundamental fact of the assessee having collected deposits from the public stands proved with respect to the entire cash credits so recovered. It can be said to have been proved, only with respect to the verifiable materials produced before the AO and on which the AO had entered a satisfaction. There could hence be no rule of probability applied as against the specific provision under Section 68 of the Act. We are of the opinion that the Tribunal acted erroneously and in a perverse manner insofar as directing deletion of the addition not proved before the AO; applying the rule of probability, which is alien to the Act. Matter remanded back to AO for verification - Decided in favor of revenue.
|