Appeal allowed, deletion of cash credit addition under sec. 68. Assessee's evidence deemed genuine. The ITAT Delhi allowed the appeal, directing the deletion of the total addition of Rs. 16,11,500 in respect of unexplained cash credit under sec. 68 of ...
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Appeal allowed, deletion of cash credit addition under sec. 68. Assessee's evidence deemed genuine.
The ITAT Delhi allowed the appeal, directing the deletion of the total addition of Rs. 16,11,500 in respect of unexplained cash credit under sec. 68 of the Act. The ITAT found that the Assessing Officer failed to disprove the evidence presented by the assessee, who established the genuineness of the claim with detailed evidence for both cash and cheque transactions. The order was pronounced on 26.07.2016.
Issues involved: 1. Addition of unexplained cash credit under sec. 68 of the Act.
Analysis:
Issue 1: Addition of unexplained cash credit under sec. 68 of the Act.
The appellant challenged the addition of Rs. 16,11,500 made in respect of unexplained cash credit under sec. 68 of the Act. The assessee, a non-banking finance company, contended that income pertaining to non-performing assets should not be considered as income as per RBI guidelines. The Assessing Officer raised queries about share application money, and upon unsatisfactory explanations, made the addition under sec. 68. The appellant argued that the share application money was received in the normal course of business and presented evidence to support the transactions. The Assessing Officer doubted certain credits and added them under sec. 68. The appellant provided affidavits and confirmations from share applicants, stating that the money was refunded upon cancellation of share applications. The ITAT held that the primary onus was on the assessee to establish the genuineness of the claim, which was done by providing details and evidence for both cash and cheque transactions. The ITAT found that the Assessing Officer failed to disprove the evidence presented by the assessee, leading to the direction to delete the additions made. The ITAT allowed the appeal, directing the deletion of the total addition of Rs. 16,11,500. The order was pronounced on 26.07.2016.
This detailed analysis of the judgment provides a comprehensive understanding of the issues involved and the decision rendered by the ITAT Delhi regarding the addition of unexplained cash credit under sec. 68 of the Act.
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