Case Law Details
Sheela Yogi Vs ITO (ITAT Jaipur)
Once the summons have been issued and these persons have appeared and given their statements before the AO wherein they have confirmed that they have advanced the amount to the assessee towards purchase of the agricultural land and has also disclosed the source of their earnings/savings, the assessee has discharged the necessary onus cast on her in terms of identity, creditworthiness and genuineness of the transactions in the facts and circumstances of the present case. Similar is the position regarding receipt of Cash gifts from father and father-in-law which is duly supported by the respective gift deeds, the contents and authencity of which are not in dispute. In case of CIT vs Shri Bhim Singh Chundawat (supra), the Hon’ble Rajasthan High Court held as under:
“4. A bare perusal of the order passed by the CIT(A) reveals that the CIT(A) discussed the creditworthiness and genuineness of each and every individual transaction and found 13 creditors as genuine. The ITAT has arrived at the finding that the assessee has established the creditworthiness of the creditors to the extent he is obliged under the law to do so. The ITAT found that the creditors have accepted that they had advanced their respective credits to the assessee and also given the details of the sources of the deposit. The ITAT opined that the assessee cannot be burdened with proof of ‘source of source ’ and the cash credit cannot be held to be ingenuine by stretching the ingredients of Section 68 too far. We are of the considered opinion that the findings arrived at by the CIT(A), affirmed by the ITAT regarding identity of the creditors and creditworthiness and genuineness of the transactions remain findings of facts, which do not give rise to any substantial question of law. ”
In the entirety of facts and circumstances of the case, the addition so made is directed to be deleted. In the result, ground no. 3 & 4 of the assessee’s appeal are allowed.
FULL TEXT OF THE ITAT JUDGEMENT
Please become a Premium member. If you are already a Premium member, login here to access the full content.
