INCOME TAX ACT, 1961

Section 143(3)

Assessment - Additions to income - Assessee claimed to receive cash deposits and filed indemnity bonds from farmers - Cash deposits, whether unexplained income of assessee

Assessee received cash deposits and filed the indemnity bonds from certain persons stating that said persons were farmers and gave cash out of their agricultural receipts. AO went through indemnity bonds, and alleged that no details of land holding, evidence of sale and purchase of produce were furnished. As assessee did not produce these persons for verification, thus, AO accordingly held that source of such cash deposit remained unexplained which was brought to tax in the hands of the assessee. Held: Assessee failed to discharge the initial onus cast on him in terms of satisfying the test of creditworthiness and genuineness of the transactions so claimed by him and unless the initial onus cast on the assessee is discharged, the burden does not shift on to revenue to prove otherwise and mere non-issuance of summons did not support the case of the assessee. There was no infirmity in the findings of lower authorities, where the cash deposit was found not satisfactorily explained and brought to tax in the hands of the assessee as his unexplained income.

REFERRED :

FAVOUR : Against the assessee.

A.Y. : 2014-15

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