Section 68: AO cannot inquire source of source 

DCIT Vs Aarti Catalyst Solutions P. Ltd. (ITAT Ahmedabad) In the present case on hand, the assessee has discharged his onus by providing details relating to the loan amount availed from the three creditors by producing their bank accounts, Income-Tax Returns, confirmation letters, etc. The AO has doubted source of the creditors thereby the AO is inquiring source of source which is not permitted as held in various judgments cited (supra). Wherever explanation has been provided by the assessee, the ld.CIT(A) has deleted such credits, and also confirmed the amount of loans which were not explaine...