TMI Blog2020 (1) TMI 1153X X X X Extracts X X X X X X X X Extracts X X X X ..... d for the assessee to explain the sources of the source. In other words, he was not required to explain the sources of the money provided by the creditor Smt. Savitri Thakur i.e. Shri Rajendra Bahadur Singh and Smt. Sarojini Thakur. We are of the view that the Tribunal was not justified in sustaining the addition to the total income of the assessee as undisclosed cash credit under section 68 of the Act. - Decided in favour of assessee. - INCOME TAX APPEAL NO. 1750 OF 2017 - - - Dated:- 22-1-2020 - UJJAL BHUYAN AND MILIND N. JADHAV,JJ. Mr. Dharam V. Gandhi, Advocate for the Appellant. Mr. Sham Walve, Advocate a/w. Mr. Pritesh Chatterjee, Advocate for the Respondent. ORAL ORDER : 1. Heard Mr. D. V. Gandhi, learned ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... loan was not established by the assessee; besides credit worthiness of Smt. Savitri Thakur was found to be suspect. Consequently, the aforesaid amount of ₹ 17 lakhs was added back to the total income of the assessee under section 68 of the Act as unexplained cash credit vide the assessment order dated 22.03.2013. 6. As against the above, assessee preferred appeal before the Commissioner of Income Tax (Appeals)-42, Mumbai. By order dated 04.07.2016, the Appellate Authority upheld and confirmed the order of the Assessing Officer. 7. Assessee carried the matter further in appeal before the Tribunal. Out of ₹ 17 lakhs loan given by Smt. Savitri Thakur to the assessee, Tribunal held that loan amount of ₹ 3 lakhs was prope ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... assessee. Smt. Savitri Thakur claimed that these amounts were received by her as gifts from one Shri Rajendra Bahadur Singh and Smt. Sarojini Thakur. Shri Rajendra Bahadur Singh is the brother of Smt. Savitri Thakur and Smt. Sarojini Thakur is the sister of Smt Savitri Thakur. Shri Rajendra Bahadur Singh had gifted ₹ 5 lakhs to Smt. Savitri Thakur and Smt. Sarojini Thakur had gifted to ₹ 5 lakhs and ₹ 4 lakhs to Smt. Savitri Thakur. Result of verification and remarks by the Department in respect of Shri Rajendra Bahadur Singh is as under : The donor had retired in 2003 and claims to earn tuition income of ₹ 1.5 Lacs p.a. and this money has been claimed to have been hoarded and kept in cash by him over several y ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... planation 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 the relevant previous year. 13. Section 68 of the Act has received considerable attention of the courts. It has been held that it is necessary for an assessee to prove prima facie the transaction which results in a cash credit in his books of account. Such proof would include proof of identity of the creditor, capacity of such creditor to advance the money and lastly, genuineness of the transaction. Thus, in order to establish receipt of credit in cash, as per requirement of section 68, the assessee has to explain o ..... X X X X Extracts X X X X X X X X Extracts X X X X
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