Sec. 68 AO cannot Examine Source of Source in Non-Share Capital Cases

Ld. CIT(A) has rightly observed that the assessee is not required to explain source of source of the fund gets buttressed by the amendment made in section 68 with effect from 01.04.2013, which empowers the AO to examine source of source in case of share application money from 01.04.2013 and no other cases prior to that. This amendment further does not give power to the AO to examine source of source of non-share capital cases and that too prior to 01.04.2013. Undisputedly, the assessee has given complete addresses and credit worthiness of the persons from whom she has taken loans.”

FULL TEXT OF ITAT ORDER

This appeal by the Revenue is directed against the Order of the Ld. Commissioner of Income Tax (Appeals)-XXVI, New Delhi dated 11.3.2014 pertaining to Assessment Year 2008-09 on the following grounds:-

1. The Ld. CIT(A) has erred in allowing the assessee to file fresh evidence under the Rule 46A without appreciating the fact that the assessee was given two opportunities for filing the details during the assessment proceedings.

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