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| The Tax Publishers2020 TaxPub(DT) 4305 (Mad-HC) INCOME TAX ACT, 1961
Section 68
Where AO made addition on account of unexplained cash credit taken from certain persons, considering fact that assessee provided explanation, and such explanation was found acceptable by AO for previous and subsequent assessment years and there was no attempt made to summon said persons, the appropriate view that should have been taken was to take note of genuinity of assessee and decision of AO in assessee's own case for the earlier and subsequent assessment years.
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Income from undisclosed sources - Addition under section 68 - Unexplained cash credit - AO failed to summon persons identified by assessee
Assessee challenged order of Tribunal confirming additions made under section 68 on account of unexplained cash credit from certain persons. Assessee contended that initial burden of proof was discharged by assessee and revenue failed to issue summons and allow cross-examination as ordered by the Tribunal in earlier round of litigation. Held: Assessee provided explanation, and such explanation was found acceptable by AO for previous and subsequent assessment years. AO did not record a specific note of his satisfaction/dissatisfaction with regard to those persons. Assessee was non-suited solely on the ground that one N did not appear and other two persons did not respond. Fact remained that notice sent by AO to N returned with a postal endorsement 'left' and there was no attempt made to summon said person by following other modes of substituted service. However the appropriate view that should have been taken was to take note of genuinity of the assessee and the decision of AO in assessee's own case for the earlier and subsequent assessment years.
REFERRED :
FAVOUR : In assessee's favour.
A.Y. :
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