9911796707
TMI Blog2013 (1) TMI 450X X X X Extracts X X X X X X X X Extracts X X X X ..... cision in case of Power Drugs Ltd. (2011 (7) TMI 235 - PUNJAB AND HARYANA HIGH COURT) unequivocal terms held that the primary onus was on the assessee was to establish the identity, creditworthiness and genuineness of the transaction in order to escape from the provisions of section 68 The statutory requirement for treating any amount as income of the assessee u/s 68 is where the assessee fails to justify and establishes the genuineness of the entry in the books of account - In favour of revenue - ITA No. 146 of 2005 - - - Dated:- 3-10-2012 - MR. AJAY KUMAR MITTAL AND MR. GURMEET SINGH SANDHAWALIA JJ. Present:- Mr. Rajesh Sethi, Advocate for the appellant. Mr. Sanjay Bansal, Sr. Advocate with Mr. Rajiv Sharma, Advocate for t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... /- on account of unabsorbed depreciation was filed on 30.11.1994. During the course of assessment proceedings, it was noticed by the Assessing Officer that the total investment in the share capital was Rs. 1,49,03,000/- and unsecured loans stood at Rs. 13,50,000/-. Inspite of sufficient opportunities afforded, amounts received towards share capital/loans amounting to Rs. 72,43,000/- were not satisfactorily explained. Assessment was framed at an income of Rs. 48,96,340/- under Section 143(3) of the Act vide order dated 27.3.1997, Annexure A.1. Aggrieved by the order of the Assessing Officer, the respondent filed an appeal before the Commissioner of Income Tax (Appeals) [CIT(A)], Faridabad who vide order dated 29.12.1997, Annexure A.2 del ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... as unexplained investment. 6. Learned counsel for the respondent supported the orders passed by the Tribunal in both the cases. 7. After hearing learned counsel for the parties, we find that the CIT(A) as well as the Tribunal were in error in adjudicating the issue against the revenue. 8. It would be expedient to reproduce Section 68 of the Act which reads as under:- 68. Where any sum is found credited in the books of an assessee maintained for any previous year, and assessee offers no explanation about the nature and source thereof or the explanation offered by him is not, in the opinion of the Assessing Officer, satisfactory, the sum so credited may be charged to income-tax as the income of the assessee of that previous year. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f the transaction in order to escape from the provisions of section 68 of the Act. It was further held that whether an addition is liable to be made in the hands of an assessee depends upon the facts of each case. The CIT(A) as well as the Tribunal had not adjudicated the issue on merits and had decided the issue either by holding the same to be inexigible to tax being prior to commencement of the business or that the same was capital in nature and it was not exigible to tax. Adverting to the judgments relied upon by learned counsel for the assessee, suffice it to observe that they being based on individual fact situation involved therein have no applicability to the present controversy involved herein. 12. In view of the above, both the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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