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TMI Blog2021 (1) TMI 319X X X X Extracts X X X X X X X X Extracts X X X X ..... ee has discharged its onus imposed under Section 68 of the Act. The details filed by the assessee was not cross verified by the Revenue from the respective parties despite having the necessary details in its possession. Thus, we are of the view, Revenue cannot go to hold the addition under Section 68 of the Act in the given facts and circumstances. See CHANAKYA DEVELOPERS [ 2013 (10) TMI 7 - GUJARAT HIGH COURT] . Creditworthiness of the lender was justified by the assessee. Once the cash credit gets explained within the parameters of the provisions of section 68 of the Act, then the question of disallowing the interest expenses does not arise in the given facts and circumstances. In view of the above, we are not impressed with the findin ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... kta A Doshi ₹ 10,00,000/- Iii Jayesh P. Shah(HUF) ₹ 2,00,000/- Total ₹ 22,00,000/- 3.1 The AO during the assessment proceedings found that the assessee failed to establish the creditworthiness of the aforesaid parties on the basis of documentary evidence. Accordingly the AO treated the impugned amount of loan shown by the assessee as unexplained cash credit under section 68 of the Act. The AO also worked out the amount of interest on such loan amounting to ₹ 1,48,665.00 only. Hence the AO disallowed the same by adding to the total income of the assessee. 5 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e identity can be proved, the genuineness of the transaction and the creditworthiness of the creditor is proved by documentary evidence. If the assessee presents all these details during the assessment proceeding before the AO, the responsibility shifts to the AO to prove it wrong. If AO accepts such evidences without proving it wrong, it can be said that assessee has discharged its onus. If AO presents some contrary evidences, the responsibility again shifts upon the assessee to rebut such contrary evidences. 9.2 Admittedly, in the case on hand, the assessee has discharged its primary onus by furnishing the necessary details such as copy of PAN, confirmation of the parties, Bank extracts etc. to support the transactions. The necessary d ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... -forth by the assessee. Both the authorities have concurrently held the issue in favour of the assessee and moreover, the entire issue is essentially in the realm of facts. No question of law, therefore, arises and hence this issue deserves no further consideration. 9.3 From the above it is inferred that the principle, which is made applicable to addition under Section 68 of the Act is that the initial onus is on the assessee to discharge by producing the evidence which is required to establish - (i) identity of the creditor; (ii) the capacity/creditworthiness of the creditor to advance the money; and (iii) the genuineness of the transaction. Once the assessee does so, the onus shifts to the Assessing Officer to make further inq ..... X X X X Extracts X X X X X X X X Extracts X X X X
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