TMI Blog2022 (11) TMI 880X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 rebutt ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... them by observing that these companies belong to Praveen Jain Group. Accordingly, the AO assessed the above said sum of Rs.45.00 lakhs as income of the assessee u/s 68 of the Act. 3. Before Ld CIT(A), the assessee challenged the validity of reopening of assessment and also the addition made by the AO. The Ld CIT(A), however, dismissed the appeal and hence the assessee has filed this appeal before the Tribunal. 4. The Ld A.R submitted that the assessing officer has made the addition u/s 68 of the Act. The 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 o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... as rejected the claim of non providing of opportunity for cross examination on the basis of a decision rendered on the scope of provisions of sec.254(2) of the Act, which is not applicable to the facts of the present case. 6. The Ld D.R, however, supported the order passed by Ld CIT(A). He further placed his reliance on the decision rendered by the co-ordinate bench in the case of DCIT vs. Leena Power Tech Engineers P Ltd (ITA No.1313/Mum/20 dated 21-09-2021) and submitted that the Tribunal has confirmed the addition of share application money u/s 68 of the Act. 7. In the rejoinder, the Ld A.R submitted that the decision rendered by the co-ordinate bench in the case of Leena Power Tech Engineers P Ltd (supra) will not apply to the fac ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... mounts as unexplained cash credit u/s 68 of the Act. The Ld CIT(A) also did not examine the documents furnished by the assessee. He has placed reliance on the propositions laid down by Hon ble Supreme Court 9. 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 of the Act. 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 th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the AO has not brought any material on record to rebut the documents furnished by the assessee. 12. The Ld D.R relied upon the decision rendered by the co-ordinate bench in the case of Leena Power Tech Engineers P Ltd (supra). The Ld CIT(A) has also relied upon certain decisions rendered by Hon ble Supreme Court. 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. I noticed that the assessee, in the instant case, has discharged the initial onus placed u ..... X X X X Extracts X X X X X X X X Extracts X X X X
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