Case Law Details
ITO Vs Sanjeev Kejriwal (ITAT Kolkata)
Conclusion: Addition under section 68 on account of entire credits shown by assessee in form of realization from debtors was justified as the onus was primary on assessee to prove that the said cash was sourced by realization from debtors, which had not been proved by assessee except making an oral statement and taking credence from the entries passed by him in the books of accounts.
Held: From the details filed during the course of assessment proceedings, AO sought to verify the sundry debtors balance as appearing in books of assessee-proprietary concern and issued notices under section 133(6) to seven parties. Since notices got returned unserved, AO came to conclusion that entire credits shown by assessee in form of realization from debtors during the year as not proved within meaning of section 68 and added the same by treating as unexplained cash credit. It was held once cash was deposited into bank account of assessee, the onus was primary on assessee to prove that the said cash was sourced by realization from debtors, which in the instant case had not been proved by assessee except making an oral statement and taking credence from the entries passed by him in the books of accounts. Moreover, assessee did not take corrective measures to produce confirmations from these seven sundry debtors either during the assessment proceedings or during the appellate proceedings. Hence the primary onus and the three ingredients of section 68 had not been discharged by assessee in the instant case, thus, addition was justified.
FULL TEXT OF THE ITAT JUDGEMENT
1. This appeal by the Revenue arises out of the order of the Learned Commissioner of Income Tax(Appeals)-XIV, Kolkata, [in short the ld CIT(A)] in Appeal No. 308/CIT(A)-XIV/Kol/10-11 dated 15.05.2013 against the order passed by the ITO, Ward-30(3), Kolkata [ in short the ld AO] under section 143(3) of the Income Tax Act, 1961 (in short “the Act”) dated 29.12.2010 for the Assessment Year 2008-09.
Please become a Premium member. If you are already a Premium member, login here to access the full content.
