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2022 (10) TMI 1047 - AT - Income TaxAddition u/s 68 - unexplained share capital - deemed income - HELD THAT:- We find that Section 68 does not talk about any beneficiaries but is added in the hands of each and every person where Assessee fails to prove identity, creditworthiness and genuineness of the transaction to the satisfaction of AO. It is deemed income in the hands of the assessee who fails to explain nature and source of the same before the AO. Deeming fiction applies in the hands of the person in whose book’s sums are credited. There it ends, such deeming fiction cannot travel to other assessee for satisfying ingredients of section 68 of the Act as held by ld. CIT [A] in this case. This addition needs to be tested u/s 68 in the hands of the assessee irrespective of the fact whether the sum is added in the hands of other assessee or not or beneficiaries are different. There is no concept of beneficial ownership of income u/s 68 of the act. Importing the same in section 68 is in clear violation of simple provisions of that section. We set aside the whole issue in the appeal of AO back to the file of AO with a direction to the assessee to prove identity and creditworthiness of the deposits as well as the genuineness of the transactions. AO should examine the claim of the assessee in light of various statements of entry operators recorded during the course of survey and search and there after decide the issue afresh in accordance with law. Needless to say initial onus would be on the assessee to prove the cash credit to the satisfaction of ld. AO. AO may carry out the inquiry as well as examination of various persons, if found proper, either directing assessee or by use of powers vested in him, before deciding the issue afresh.
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