Maintainability of a Section 7 insolvency petition against a financial service provider denied; appeal dismissed for non maintainability and complex d...
Provisional attachment under Prevention of Money Laundering Act requires exhaustion of statutory remedies; impugned order set aside, appeal to tribuna...
Restoration of property under Prevention of Money Laundering Act after attachment dispute rendered academic; possession directed to successful resolut...
Burden of proof for unexplained credits lies on the assessee in whose books the entries appear; the assessee must prove identity, creditworthiness and genuineness of creditors, failing which additions are sustainable. Evidence from search records and sworn statements established that the assessee functioned as a conduit for accommodation entries, so AO's additions treating credits as unexplained were restored. The CIT(A)'s view that protective additions fall because beneficiaries faced substantive additions was rejected; liability for unexplained credits attaches independently to the booked assessee, and consequential additions for parallel undisclosed cash routing were upheld.
Burden of proof for unexplained credits lies on the assessee in whose books the entries appear; the assessee must prove identity, creditworthiness and genuineness of creditors, failing which additions are sustainable. Evidence from search records and sworn statements established that the assessee functioned as a conduit for accommodation entries, so AO's additions treating credits as unexplained were restored. The CIT(A)'s view that protective additions fall because beneficiaries faced substantive additions was rejected; liability for unexplained credits attaches independently to the booked assessee, and consequential additions for parallel undisclosed cash routing were upheld.
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