Addition for Unexplained cash credits cannot be made for doubt on source of credit

CIT Vs M/s. Sree Ganesh Trading Company (Kerala High Court)

Conclusion: AO was not justified in making addition to the income of assessee under section 68 on account of alleged unexplained credits as assessee-firm had proved identity, creditworthiness of the creditors from whom it had received credits and if AO had doubt on the source of the donor/ creditor, there could be an assessment made only on that donor or creditor and not on the firm.

Held: AO aske

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