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TMI Blog2014 (8) TMI 679X X X X Extracts X X X X X X X X Extracts X X X X ..... nch, Amritsar (hereinafter, to be referred as "the Tribunal", in short) in I. T. A. No. 74 (ASR)/2006 relating to the assessment year 2002-03, vide which the orders passed by the authorities directing addition of an amount of Rs. 86,737 in the income of the respondent and initiation of penalty proceedings under section 271(1)(c) read with Explanation 1(A), have been set aside. 2. On October 19, 2007, the instant appeal was admitted to determine the following substantial questions of law : "1. Whether the Income-tax Appellate Tribunal has erred in law in deleting the addition sustained by the Commissioner of Income-tax (Appeals) despite having returned the finding that as per th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... supply of packing charges of 200 LPG stoves. But the order did not mature and he returned the amount without interest, vide cheque No. 64838, dated December 12, 2002. The version was not accepted by the assessing authority and treated the entry of Rs. 86,737 as an unexplained credit and ordered addition thereof in the return of the assessee, vide order dated March 26, 2005. 4. Dissatisfied with the same, the assessee preferred an appeal before the Commissioner of Income-tax (Appeals), Jammu (Headquarters Amritsar) (for short, "the CIT(A)"), which concurred with the view taken by the assessing authority and dismissed the appeal, vide order dated February 16, 2006 (annexure A-1). 5. Impugning both the orders, the assessee approached the Tr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... respondent had discharged the burden of the genuineness of the said entry by proving the identity and capacity of the creditor. 9. Section 68 provides for charging of income of the assessee to tax, if in the opinion of the Assessing Officer, the assessee failed to render any explanation or the explanation offered by the assessee about the nature and source of any sum found credited in the books of the assessee maintained for the previous year, is unsatisfactory. In other words, it is for the assessee to prove the genuineness of the transaction by identifying the creditor and its capacity to advance money. The onus lies upon the assessee to explain the credit entry but it shifts upon the Assessing Officer under certain circumstances. Where ..... X X X X Extracts X X X X X X X X Extracts X X X X
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