https://www.taxtmi.com/caselaws?id=32696 Where cash credits are claimed as disclosed loans received through banking channels, the Assessing Officer must carry out effective verification of the lenders' creditworthiness and the genuineness of the transactions before rejecting the explanation under section 68 of the Income-tax Act, 1961. If the assessee seeks summoning of the creditors and an effective opportunity to discharge the burden, the Tribunal may direct such verification under section 131 so that the material can be tested for veracity. The High Court found no prejudice to the Revenue in that remand direction and upheld the verification process, leaving the cash-credit issue to be determined on the basis of the creditors' examination. en-us Tue, 13 Jan 2009 00:00:00 +0530 Sat, 21 Mar 2009 00:00:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=32696 Where cash credits are claimed as disclosed loans received through banking channels, the Assessing Officer must carry out effective verification of the lenders' creditworthiness and the genuineness of the transactions before rejecting the explanation under section 68 of the Income-tax Act, 1961. If the assessee seeks summoning of the creditors and an effective opportunity to discharge the burden, the Tribunal may direct such verification under section 131 so that the material can be tested for veracity. The High Court found no prejudice to the Revenue in that remand direction and upheld the verification process, leaving the cash-credit issue to be determined on the basis of the creditors' examination. Case-Laws Income Tax Tue, 13 Jan 2009 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=32696