Section 68 addition valid if Assessee Fails to Prove Creditworthiness of Creditors

Sumo Advertises Pvt. Ltd. Vs ACIT (ITAT Delhi) A perusal of the assessment order reveals that during the course of the assessment proceedings, the Id. AO asked the appellant to establish the credits appearing in its books of account. However, no details were filed by the latter. As per the provisions of section 68, the onus was on the appellant to establish the identify and credit worthiness of the creditors and the genuineness of the transaction. However, the said onus was not discharged by the appellant. Based upon the statement of Sh. V.K. Jain, who controlled the companies which allegedly ...