2008 (2) TMI 276

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....of proof on the assessee under section 68 of the Income-tax Act, 1961, extended to requiring the assessee to establish the nature and source of the amount ?" 2. For ready reference section 68 of the Income-tax Act, 1961 (called "the Act" for brevity), is reproduced below: "68. 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 offered by him is not, in the opinion of the Assessing Officer, satisfactory, the sum so credited may be charged to income-tax as the income of the assessee of that previous year." 3. The facts are that the assessee, during the previous year relevant to the assessment year 1....

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....to disclose the source from which the money has been received by the assessee. This does not require the assessee to disclose the source of that source, i.e. the source from which the donor or investor has received the money which has been invested. 8. The second part of section 68 of the Act consists of offering an explanation which is "satisfactory" in the opinion of the Income-tax Officer. What explanation would be considered "satisfactory", how much of details should be furnished to make the explanation "satisfactory" normally depends upon the facts. 9. The Tribunal has held, on the facts and circumstances narrated above, that for making the explanation "satisfactory", the assessee was required to furnish in the explanation the ad....