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 asked assessee-firm to explain certain credits seen in the books of accounts, which, assessee claimed, were amounts received from the partners.Â...