Pooja Equiresearch Pvt. Ltd Vs DCIT (ITAT Mumbai)
ITAT Mumbai held that as per previous provisions of section 68 of the Income Tax Act applicable till 31st March 2013, the assessee was not required to explain the source of money provided by the creditors. Accordingly, addition based on non-establishing source of source set aside.
Facts- Post reopening of assessment under section 147 of the Income Tax Act, based on the doubt of creditworthiness of the creditors, AO made addition of Rs.1,26,00,000/-as unexplained cash credit under section 68 of the Income Tax Act. Commissioner vide the impugned order affirmed the said addition. Being aggrieved, the present appeal is filed.
Conclusion- Held it is clear that prior to insertion of new provisions in Section 68 of the Act, vide amendment by the Finance Act, 2012 w.e.f. 1st April, 2013, the Assessee was not supposed to establish the source of source. As observed above, the Assessee has admittedly been able to establish the identity of the creditors and the source of the credits in its books of accounts and, has prima facie discharged its onus cast under un-amended section 68 of the Act. Thus, on the aforesaid reasons and dictum laid down by the Jurisdictional High Court in the cases referred to above and relevant provisions of Section 68 of the Act as applicable to the instant case, the addition under consideration which is based on non-establishing the source of source, is un-sustainable and, thus, the same is deleted.
