Onus of proof on taxpayer: require written show cause and production of lenders before treating cash credits as income. The onus of proving cash credits or loans in the taxpayer's books is on the taxpayer, who must be asked by written show cause notice to establish the nature and source and to produce discharged hundi khokas or other proof. Documents should be proved by producing the signatory lenders; affidavits or confirmatory letters are insufficient unless the lender is produced for identification and examination. Failure by the taxpayer to produce or request production of the alleged lender permits the ITO to reject such uncorroborated evidence after recording that fact. Confessional statements require independent corroboration and additions must reflect the taxpayer's failure to prove the credits.
Cases where this provision is explicitly mentioned in the judgment/order text; may not be exhaustive. To view the complete list of cases mentioning this section, Click here.
Provisions expressly mentioned in the judgment/order text.
Onus of proof on taxpayer: require written show cause and production of lenders before treating cash credits as income.
The onus of proving cash credits or loans in the taxpayer's books is on the taxpayer, who must be asked by written show cause notice to establish the nature and source and to produce discharged hundi khokas or other proof. Documents should be proved by producing the signatory lenders; affidavits or confirmatory letters are insufficient unless the lender is produced for identification and examination. Failure by the taxpayer to produce or request production of the alleged lender permits the ITO to reject such uncorroborated evidence after recording that fact. Confessional statements require independent corroboration and additions must reflect the taxpayer's failure to prove the credits.
Full Summary is available for active users!
Note: It is a system-generated summary and is for quick reference only.
TaxTMI 
of 
TaxTMI 
