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2022 (11) TMI 880 - AT - Income TaxAddition u/s 68 - Unexpalined cash credits - initial burden to prove the cash credits - whether assessee has discharged the initial onus to prove the cash credits by furnishing all the information to prove the three main ingredients, viz., the identity of the creditor, the credit worthiness of the creditor and the genuineness of transactions? - HELD THAT:- It is settled proposition of law that the initial burden to prove the cash credits is placed upon the shoulders of the assessee u/s 68 - In order to discharge the said burden, the assessee has to prove three main ingredients, viz., the identity of the creditor, the genuineness of the transactions and the credit worthiness of the creditor. If the assessee discharges the initial burden, then the burden would shift to the shoulders of the assessing officer, i.e., it is the responsibility of the AO to disprove the claim of the assessee by bringing evidences on record. The settled proposition of law is that the requirement of invoking the provisions of sec.68 of the Act in respect of cash credits has to be decided on the basis of facts prevailing in each of the case and the answer to the question as to whether the assessee has discharged the initial onus placed upon it by proving three main ingredients. As noticed that the assessee, in the instant case, has discharged the initial onus placed upon it. AO has not rebutted the same. Accordingly, we hold that the addition made u/s 68 of the Act is not justified.
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