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2022 (8) TMI 910 - AT - Income TaxAddition u/s 68 - Whether identity and creditworthiness of the cash received from the said company has been established? - CIT-A deleted addition - HELD THAT:- As per Section 68 it is the burden on the assessee to establish identity, creditworthiness and genuineness of the transaction for sum credited in the books of accounts to the satisfaction of the AO - We do not understand proposition of the assessee that cash had changed the hands from the company to its promoter–Director without any reason and there is no reason forthcoming as to why the cash was paid in cash by the three parties. There is no document produced before either the AO or before CIT (Appeals) or before us to prove the genuineness of the transaction. While deleting the addition the CIT (Appeals) has not discussed about the proving of genuineness of the transaction by the assessee. CIT (Appeals) merely relied on the submission made by the assessee and come to the conclusion in favour of the assessee. The entire approach of the CIT (Appeals) is erroneous and the matter deserves to be re-looked by the AO - Hence, in the interest of justice, we deem it fit to set aside the issue of addition u/s 68 to the file of the AO with a direction to the assessee to prove the creditworthiness and genuineness of the above transaction with creditable evidence and reasons for travelling such amount of cash from the company to the promoter and parties with whom share purchase agreement has been entered. The assessee should also relate the cash deposit date-wise with the cash received by the parties. Needless to say the ld. Assessing Officer shall give opportunity of hearing to the assessee as per law. The grounds of appeal filed by the Revenue are allowed for statistical purpose.
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