2017 (11) TMI 1500

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....s unjustified and unsustainable in law as well as on merits." 2. The brief facts of the case are that Assessee filed return of income declaring income of Rs. 1,51,400/- on 30.7.2010. In this case assessment was completed u/s. 143(3) of the Income Tax Act, 1961 on 26.3.2013 at total income of Rs. 13,98,695/- making addition of Rs. 12,00,000/- on account of unexplained cash credits/cheques. Aggrieved with the assessment order, assessee filed the appeal before the Ld. CIT(A) who vide his impugned order dated 16.3.2017 has restricted the addition to Rs. 10 lacs from Rs. 12 lacs and partly allowed the appeal the appeal of the assessee. 3. Aggrieved with the impugned order of the Ld. CIT(A), the Assessee is in appeal before the Tribunal. 4. L....

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....ally the order of the Ld. CIT(A). Assessee entered into sell and purchase agreement dated 6.5.2009 with one Sh. Kripa Ram for sale of property No. 67/2, Munirka Village, Delhi for Rs. 50 lacs and assessee received Rs. 10 lacs from Sh. Kripa Ram as advance against the sale of the said property. Since Sh. Kripa Ram has not been able to make the balance payment of Rs. 40 lacs, this transaction agreed to be cancelled and as a result thereof, assessee returned back Rs. 10 lacs to Kripa Ram through cheque on 13.3.2013. Accordingly, the AO has made the addition due to the reasons that assessee has not filed any evidence regarding ownership of the aforesaid property; genuineness of the transaction not proved and Sh. Kripa Ram not appeared in respon....

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....ing case laws:- -CIT vs. Shiv Dhooti Pearls & Investment Ltd. 237 Taxman 104 (Del) Section 68 of the Income Tax Act, 1961 - Cash credit (Burden of proof) - Assessment year 1994-95 - whether in terms of section 68, assessee is liable to disclose only source(s) from where he has himself received credit and it is not burden of assessee to show source(s) of his creditor nor is it burden of assesee to prove creditworthiness of source(s) of sub-creditors - Held, yes - Whether, however, AO has ample 'freedom' to make inquiry 'not only into source(s) of creditors, but also of his (creditor's) subcreditors and prove as a result of such inquiry, that money received by assessee, in form of loan from creditor, though routed through sub creditors, ....

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....as been advanced thereafter. There is no cash deposit in his bank account before advancing loan. Similar facts are in respect of Smt. Sujata Sachdeva. Her bank account is showing consistent credit and debits having substantial credit balance throughout year. From the above, it is evident that the assessee has discharged her onus of proving identity, the source of loan and the genuineness of transactions in accordance with the provisions of section 68. It is a settled law that the assessee is not answerable to explain source of source of the fund. In light of the fact that there is no cash deposit in the bank accounts of the three persons for advancing loan and their categorical admission confirming loan during the remand proceedings, we are....