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The Tax Publishers2020 TaxPub(DT) 1563 (Karn-HC) INCOME TAX ACT, 1961
Section 68
Assessee having proved identity and credit worthiness of the party as well as the genuineness of the transaction had discharged its burden and it was for revenue to conduct an enquiry and to prove that the transaction in question was not genuine. Having failed to do so, revenue could not make any addition under section 68.
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Income from undisclosed sources - Addition under section 68 - Assessee whether liable to provide explanation towards source of source as regards amount obtained from creditors -
Assessee challenged order of Tribunal, wherein assessee was expected to prove source of source and origin of origin of funds of creditor.Held: In instant case, assessee in support of identity, genuineness of transaction and credit worthiness of creditor had supplied a copy of balance sheet and profit and loss account to AO. Assessee also filed copy of the return of income of creditor along with copy of information letter. Assessee having proved identity and credit worthiness of the party as well as the genuineness of the transaction had discharged its burden and it was for revenue to conduct an enquiry and to prove that the transaction in question was not genuine. In instant case, revenue did not conduct any enquiry and failed to discharge its burden.
REFERRED : Pr. CIT v. NRA Iron & Steel (P) Ltd. (2019) 412 ITR 161 (SC) : 2019 TaxPub(DT) 1628 (SC); CIT v. P.R. Ganapathy & Anr. (2012) 26 taxmann.com 354 (SC) : 2012 TaxPub(DT) 3087 (SC); CIT v. Orissa Corporation (P) Ltd. (1986) 159 ITR 78 (SC) : 1986 TaxPub(DT) 1425 (SC); CIT v. Daulat Ram Rawatmall (1973) 87 ITR 349 (SC) : 1973 TaxPub(DT) 0323 (SC); Labh Chand Bohra v. ITO (2008) 219 CTR 571 (Raj) : 2008 TaxPub(DT) 1957 (Raj-HC); Kanhaialal Jangid v. Asstt. CIT (2008) 217 CTR 354 (Raj) : 2008 TaxPub(DT) 0454 (Raj-HC); M/s. Kumar Nirman & Nivesh (P) Ltd. v. Asstt. CIT [ITA No. 947/Bang/2009, 1010/Bang/2009, dt. 5-3-2010]; Pr. CIT v. M/s. Chain House International (P) Ltd. [SLP (Civil Diary) No. 1992/2019, dated 18-2-2019] : 2019 TaxPub(DT) 1432 (SC)
FAVOUR : In assesse's favour.
A.Y. : 2005-06
IN THE KARNATAKA HIGH COURT
ALOK ARADHE & RAVI V. HOSMANI, JJ.
Kumar Nirman and Nivesh (P) Ltd. v. Asstt. CIT
I.T.A. No. 255 of 2010
31 January, 2020
Appellant by: A. Shankar, Sr. Counsel for M. Lava, Advocate
Respondent by: K.V. Aravind, Advocate
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