TMI Blog2013 (12) TMI 1053X X X X Extracts X X X X X X X X Extracts X X X X ..... the books of account is genuine - The assessee is expected to establish proof of identity of the creditors, capacity of the creditors and genuineness of the transactions in order to discharge the onus cast on the assessee - By merely filing bank account details of the alleged creditors, it is not enough to hold that the assessee has satisfied the above ingredients of section 68 –Decided in favour of Revenue. - ITA No. 1026/Hyd/2010 - - - Dated:- 11-3-2013 - SHRI CHANDRA POOJARI AND SHRI SAKTIJIT DEY, JJ. For the Appellant: Smt. Amisha S. Gupta For the Respondent: Sri S. Rama Rao Order Chandra Poojari (Accountant Member).- This appeal by the Revenue is directed against the order of the Commissioner of Income-tax (Appeal ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nished addresses and bank accounts of the respective parties. He observed that the Assessing Officer without examining the parties has rejected explanation of the assessee. According to the Commissioner of Income-tax (Appeals), the assessee has discharged the initial burden cast upon it. The Commissioner of Income-tax (Appeals) called for a remand report from the Assessing Officer. In the remand proceedings, the Assessing Officer confirmed the fact that the assessee has furnished bank accounts through which the transactions took place in respect of four parties out of 8 parties and in respect of the other four parties the assessee failed to produce bank accounts. After considering the remand report, the Commissioner of Income-tax (Appeals) ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... TO [2009] 315 ITR 105 (Mad). Further she submitted that in similar circumstances in the case of Beerelli Damadar in ITA No. 1648/Hyd/2008, the Tribunal vide order dated April 9, 2010 confirmed the addition made under section 68 of the Act by observing that even the credit entries in the accounts of the assessee in the first year was liable for addition under section 68 of the Act. 7. On the other hand, the learned authorised representative submitted that the assessee is mainly in the business of acquisition, dismantling and disposal of sick industrial undertakings in the open auction. The firm has been participating in the bidding process for disposal of sick units of M/s. Neyvelli Lignite Corporation, Chennai but the tender has gone in f ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... previous year, and the assessee offers no explanation about the nature and source thereof or the explanation offered by him is not, in the opinion of the Assessing Officer, satisfactory, the sum so credited may be charged to income-tax as the income of the assessee of that previous year." 9. As per section 68 any cash credits which are not satisfactorily explained may be assessed as income. Where any sum is found credited in the books of account of the assessee, initial burden is on the assessee to offer an explanation of the nature and source of the cash credit. If the explanation is not found satisfactory or reasonable, the Assessing Officer can treat such money as the assessee's income from undisclosed sources. It was held by the Supre ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... four parties, the assessee failed to submit any details. Even after considering this position, the Commissioner of Income-tax (Appeals) observed that the assessee has produced addresses of all the 8 parties and bank accounts of four parties of them and he is having no suspicion about the nature of credits. The Commissioner of Income-tax (Appeals) also recorded a finding that the assessee commenced its business only in the month of August, 2004 and the money received cannot be said as cash credits. This finding of the Commissioner of Income-tax (Appeals) is totally incorrect. 11. First of all, the judgment relied on by the Commissioner of Income-tax (Appeals) in the case of Bharat Engineering and Construction Co. [1972] 83 ITR 187 (SC) wa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... him. It will not, therefore, be for the assessee to explain further as to how or in what circumstances the creditors have given money to the assessee or how and why he received the advances from the parties. As seen from the facts of the case, the assessee for the reasons best known to the assessee, furnished only the bank account details of four parties and not furnished any details of the other four parties. In these circumstances, the Assessing Officer cannot make further enquiry and the argument of the assessee's counsel that the assessee discharged the initial burden cast on it, is not correct. 12. In the present case, even assuming that the assessee has discharged the initial burden by proving the identity of the creditors and, ther ..... X X X X Extracts X X X X X X X X Extracts X X X X
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