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TMI Blog2018 (5) TMI 230X X X X Extracts X X X X X X X X Extracts X X X X ..... d the scope of the onus as well as the parameters on which the essentially factual matter needs to be examined and determined, is restored back to the file of AO. As regards the balance sum (of ₹ 22.25 lacs), the assessee’s case is that the non-spelling out of the nature and source of the cash deposits in its’ bank account - as required u/s. 69A of the Act, is that the same is the cash (in hand) as per its cash book. Is it by way of cash withdrawals from the bank (either the same or another) itself - an unlikely situation as an assessee would not withdraw funds from the bank only to deposit it back; or sales - which are thus a revenue receipt; or cash receipt/s from other person/s, in which case it is this person/s who is the actua ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t, i.e., unexplained credits in the sum of ₹ 38.85 lacs. The third ground, concerning a disallowance for ₹ 1,14,692 u/s. 40A(3), was not pressed during hearing, stating so per the written submissions on record, with Mr. Mir, the ld. AR for the assessee, also confirming the same during hearing on being specifically questioned in the matter by the Bench. Ground No. 3 is accordingly dismissed as not pressed. 4. As regards the first two grounds, the assessee, a Government contractor, was observed during the course of assessment proceedings to have deposited ₹ 38.85 lacs in cash in its bank account (with J K Bank, Kakapora, Pulwama) on different dates during the year, detailed at para 3 (pg. 3) of the assessment order. Th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ation of section 68 in-asmuch as the credits are from persons to whom loans had been given, so that it is only the return of a loan by them, is without any merit. Section 68 applies to any sum found credited in the assessee s books of account. Where, however, it is from a person to whom monies had been lent earlier by the assessee, i.e., represents repayment of a loan/advance, as claimed, the burden of proof on the assessee to establish the nature and the source of the credit would stand substantially impacted in-as-much as the significance of the capacity and genuineness of the credit stands diluted the earlier loan/advance providing the raison de tre of the repayment. It is, after all, where so proved, the receipt by a person of the mon ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the person/s to whom loan/s was extended, from whom the sum/s have been received during the relevant year. Then, again, how was the amount/s given, and for what purpose, as the same could not presumably be without purpose and, rather, would be for a business purpose only? None of these facts - deemed relevant, are on record. How could it be under the circumstance said, as contended, that the credits are proved as the same represent a receipt back of funds - which facts itself requires being established? The primary burden in this regard is on the assessee. However, we may clarify that where the assessee satisfies that money had been paid to a particular person in an earlier year, and it is he who has paid back the same, including as to the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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