Addition u/s 68 - unexplained credit - addition of share ...

Assessee Must Prove Source of Unexplained Credits u/s 68, Not Assessing Officer; Relief Withdrawn by CIT (Appeals.

September 27, 2021

Case Laws     Income Tax     AT

Addition u/s 68 - unexplained credit - addition of share application money received - the assessee has proceeded on the basis as if the onus is on the Assessing Officer to demonstrate that the share subscriptions in question are malafide and cooked up and that the assessee has introduced his own unaccounted money by way of these share subscriptions; that is certainly incorrect. The burden is thus on the assessee to prove the nature and source of credits in his books of accounts, to the satisfaction of the Assessing Officer. Everything thus hinges on the explanation given by the assessee and on how acceptable is the explanation so given by the assessee - Relief granted by the CIT(A) withdrawn - AT

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