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| The Tax Publishers2020 TaxPub(DT) 0600 (Pune-Trib) INCOME TAX ACT, 1961
Section 68
Where AO had concluded that assessee had not explained the source of cash deposits in the books of account satisfactorily as there was equal amount of cash deposits before giving of loan to assessee and assessee had not controverted submissions made by Department but had simply stated that assessee had furnished the confirmation and his PAN Number, therefore, addition under section 68 was rightly made by AO.
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Income from undisclosed source - Addition under section 68 - Creditworthiness and identity of share applicants to be established by assessee -
During the course of assessment proceedings, assessee was asked to furnish the details of introduction of share application money, unsecured loans and creditworthiness of the investor. AO noticed that there were various cash deposits in the bank account of assessee. Assessee was, therefore, asked to furnish the source of cash deposits and the availability of the cash. The submissions of assessee were not found acceptable to AO. He accordingly held that assessee had failed to explain the creditworthiness of transaction of share application money and unsecured loans and therefore, made an addition under section 68. Held: AO had concluded that assessee had not explained the source of cash deposits in the books of accounts satisfactorily as there was equal amount of cash deposits before the giving of loan to assessee. Assessee had not controverted the submissions made by Department but has simply stated that assessee had furnished the confirmation and his PAN Number. In such a situation, addition under section 68 was rightly made by AO.
REFERRED :
FAVOUR : Against the assessee
A.Y. :
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