Addition u/s 68 sustained as genuineness of the transaction not proved

Shalibhadra Exports Pvt Ltd Vs DCIT (ITAT Mumbai)

ITAT Mumbai held that addition under section 68 of the Income Tax Act towards unexplained cash credit sustained as identity and creditworthiness of the parties and genuineness of the transaction not proved.

Facts- The assessee has challenged the order of the ld. CIT(A) on various grounds, pertaining to reopening u/s. 147 of the Act beyond the period of four years and has also challenged the addition of Rs.96,08,47,680/- on account of unexplained cash credit u/s. 68 of the Act by ignoring the fact that there are multiple transaction and without rejecting the books of accounts of the assessee u/s. 145(3) of the Act along with the other legal grounds.

Conclusion- Held that the reassessment proceeding u/s. 147 of the Act is sustainable for the reason that the A.O. had tangible material and information that was not part of the original assessment proceeding.

Held that the assessee has failed to discharge its primary onus casted upon by the statute to prove the identity and the creditworthiness of the parties and the genuineness of the transaction. Section 68 of the Act requires prima facie the assessee to establish the above three criteria’s before the A.O. nevertheless to mention that the same has to be to the satisfaction of the A.O. The assessee has failed to discharge its primary onus neither before the lower authorities nor before us. Hence, in the absence of any contradictory evidences, we find no infirmity in the order of the ld. CIT(A), therefore, we dismiss all the grounds of appeal raised by the assessee.

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