2018 (12) TMI 290

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.... GOI (TAXES) SRI. P. K. R. MENON STANDING COUNSEL FOR GOI(TAXES)SRI. JOSE JOSEPH JUDGMENT The appeal is by the assessee, against the order of the Tribunal. The questions of law framed are as follows: "i. In the facts and circumstances of the case the Tribunal ought not to have come to the conclusion that the genuineness and capacity of the creditor had not been proved, when positive evidence ....

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....ted to the accounts of the assessee termed as "advance" towards allotment of shares in the Company. The Assessing Officer [for brevity "AO"] treated the same as "cash credit" under Section 68 of the Income Tax Act, 1961 [for brevity "the Act"]. There was a notice issued and the assessee submitted an explanation. Rs. 1, 25, 000/-, which was received from five persons, was accepted as advance share ....

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....treated as cash credit under Section 68. The assessee is in appeal. 3. We notice that the decision of the Delhi High Court was rendered without noticing Section 68 of the Act. Section 68, as it stood then, reads as under: "S. 68. Cash Credit. - 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....

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....r of the AO to understand as to the explanation submitted. By the time the assessment was taken up, the investor died. The daughter-in-law of the deceased submitted that her mother-in-law would have made such investment out of cash in hand. In fact, the specific submission made by the daughter-in-law before the AO was that her husband, the son of the investor, died in the year 1965 and her father-....