The Tax Publishers2020 TaxPub(DT) 4908 (Mum-Trib)


Section 68

Where assessee had discharged onus cast upon him as he had filed all the documents proving identity, creditworthiness of parties and genuineness of transactions, therefore, addition cannot be made under section 68.

Income from undisclosed source - Addition under section 68 - Unexplained cash credits -

AO during the course of assessment proceedings observed that assessee had shown unsecured loans. On further perusal of the details, AO observed that assessee has borrowed money from concerns/companies related to Mr. P who was engaged in providing accommodation entries. Similarly, AO noticed that assessee had also borrowed money from other entities which were not directly connected with Mr. P who had arranged these accommodation entries. Assessee, in order to prove the genuineness, filed various details and documents comprising of copies of loan confirmation, annual accounts, acknowledgement of ITR's and bank statements of the persons advancing the loans. AO was not satisfied with the genuineness of transactions and accordingly, made addition under section 68. Held: Assessee had discharged its onus and AO had not brought on record cogent material to rebut the documentary evidence submitted by the assessee nor he made any enquiry. Assessee had given all the necessary evidence including the confirmation letters, bank statement, financial statements of the corporate entities. Hence, identity, creditworthiness, genuineness of the transaction was proved by the assessee and the onus cast upon the assessee was discharged. Therefore, addition made by AO under section 68 was deleted.


FAVOUR : In assessee's favour.

A.Y. : 2014-15 & 2015-16


Section 36(1)(iii)


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