Case Law Details
Case Name : Commissioner Of Income Tax Vs Smt. Prem Lata Sethi (Allahabad High Court)
Related Assessment Year :
Courts :
All High Courts Allahabad High Court
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Deletion of addition under section 68 for unexplained credits without examining creditworthiness of the persons or genuineness of the transactions for the mere fact that credit were made through Banking channels not justified.
Transaction through bank is not sufficient as per the ratio laid down in the case of CIT Vs. Precision Finance Pvt. Ltd, 208 ITR 465 Cal. Merely because the money is transferred through the bank account does not prove that the money is explained. The appellate authorities have not examined the creditworthiness of the persons or genuineness of the transactions. In the in...
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Yes, as per section 68 the creditworthiness must be proved. It is obligation on part of the assessee to prove the creditworthiness of the depositor. The identification of depositor is proved when credited amount received through bank channel but genuineness of the transactions is a question. Therefore, the Hon’ble High Court has correctly remanded the case to the Tribunal. Hon’ble Tribunal may direct to AO to go to the genuineness of the transactions.