2013 (12) TMI 834

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....out the explanation and evidence produced before him meets the requirements as to the identity, creditworthiness and the genuineness of the transactions within the para meters of Section 68 of the Income Tax Act, 1961?    (2) Whether on the facts and in the circumstances of the case, the Tribunal is right in holding that the details of the bank accounts and the details of the cheques through which the assessee received payments and the statements from bank accounts is a sufficient proof to discharge the initial burden cast upon the assessee as to the explanation of identity, creditworthiness and genuineness of the transactions taking the Know Your Customer norms in place with the banks opening and maintaining the accounts of th....

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....ho held, on appreciation of fact, that the assessee/appellant has been able to discharge the initial burden as required under Section 68 of the Income Tax Act, 1961 (for short "the Act"). Adequate materials were produced to establish that the transaction is a genuine one. We have gone through the judgment and order of the learned Tribunal. The issue is whether the requirement under Section 68 of the Act has been ascertained by the Assessing Officer at the time of assessment. We set out Section 68 of the Act, which reads as follows:    "Where any sum is found credited in the books of an assessee maintained for any previous year, and the assessee offers no explanation about the nature and source thereof or the explanation offe....

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....hus, it is clear that until and unless the explanation is offered as to the source of income and such explanation is satisfactory up to the expectation of the Assessing Officer, the assessee cannot be said to have discharged the initial burden. In this connection, we quote the fact-finding on this issue by the Assessing Officer, which is as follows:        "In respect of the other creditors, no evidence has been produced by the assessee. Even in respect of the four credits mentioned above, where the copy of bank statement has been produced, it is not a conclusive proof as required as per the provisions of Section 68 as the assessee has only proved the genuineness of the transaction, but, however, failed to p....