Sec. 68 addition of undisclosed credit liability justified in case of non-satisfactory explanation

Pawan Kumar Garg Vs CIT (Punjab and Haryana HC) Conclusion: If the explanation offered by assessee regarding nature and source of sum credited in his books of account was not found satisfactory by AO, the said sum could be charged to income tax under section 68. Held: During assessment proceedings, AO noted that credit liability was shown in the name of M/s S Ltd. Information was sought under Section 133(6) and from the books of M/s. S Ltd. it was found that there was no such credit balance of assessee. On the verification of the entries of books of account of M/s S Ltd., it was found that the...