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Issues involved: Treatment of Rs. 6 lakhs as unexplained credit u/s 68 of the IT Act, 1961 and leviability of interests u/s 234A, 234B, and 234C of the Act.
Treatment of Rs. 6 lakhs as unexplained credit u/s 68: The assessee, an individual, appealed against the CIT(A)'s order treating Rs. 6 lakhs received from Mr. B.N. Vasudev as unexplained credit u/s 68 of the IT Act. The assessee provided confirmations and explanations regarding the amount received through proper banking channels. However, the AO was not satisfied due to lack of detailed information from Mr. Vasudev and his non-appearance. The CIT(A) also found the explanations insufficient and upheld the addition. Arguments and Decisions: - Assessee's Counsel: Argued that the burden shifts to the Department to prove the credit is unexplained when loans are received by cheques and the creditor is identified. Referred to relevant court decisions supporting this stance. - Departmental Representative: Emphasized the importance of establishing the creditworthiness of the creditor, citing court rulings requiring proof of identity, creditworthiness, and genuineness of the transaction. - Tribunal's Analysis: Noted the lack of sufficient evidence establishing the credibility of the creditor and the suspicious nature of the confirmations provided. Rejected the plea that the assessee had fulfilled the burden of proof, ultimately upholding the addition of the amount as unexplained cash credit. Leviability of interests u/s 234A, 234B, and 234C: The Tribunal confirmed the mandatory nature of levying interests under ss. 234A, 234B, and 234C, dismissing the assessee's plea against their imposition. Conclusion: The Tribunal upheld the addition of Rs. 6 lakhs as unexplained cash credit due to insufficient evidence of the creditor's creditworthiness. Additionally, the plea against the levy of interests under ss. 234A, 234B, and 234C was rejected, resulting in the dismissal of the appeal.
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