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| The Tax Publishers2019 TaxPub(DT) 1231 (All-HC) INCOME TAX ACT, 1961
Section 68
Since assessee had failed to prove creditworthiness of the creditors and the genuineness of the transactions, thus, it failed to discharge the burden/condition as given in section 68 of the Income Tax Act, 1961.
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Income from undisclosed sources - Addition under section 68 - Failure to prove creditworthiness of the creditors -
Assessee was engaged in the business of silver ornaments, bullion and job work. During the course of scrutiny proceeding, AO noticed cash credit entries in the books and made addition on the allegation that assessee could not explain the genuineness of the transactions and creditworthiness of the persons advancing loan amounts. Held: Assessee could not discharge the burden/condition as given in section 68 of the Income Tax Act, 1961 because it had failed to prove the creditworthiness of the creditor and the genuineness of the transactions. Since assessee could not discharge the burden/condition as prescribed under section 68 of the Income Tax Act, 1961 with regard to creditworthiness and genuineness of the transactions in the matter, therefore, addition was sustained.
REFERRED : Ram Baboo Agrawal v. CIT & Anr. [Income Tax Appeal No. 184 of 2013 decided on 6-11-2017] : 2017 TaxPub(DT) 5326 (All-HC) Shri Rajni Kant Agrawal v. Asstt. CIT [Income Tax Appeal No. 246/Agr./2012, dt. 8-3-2013]
FAVOUR : Against the assessee
A.Y. :
IN THE ALLAHABAD HIGH COURT
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