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| The Tax Publishers2019 TaxPub(DT) 8039 (Raj-HC) INCOME TAX ACT, 1961
Section 68
Addition under section 68 for unsecured loans was justified when upon physical verification lender companies were found to be non-existing at given addresses.
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Income from undisclosed sources - Addition under section 68 - Borrowings shown from non-existing lender companies -
Assessee was aggrieved by additions made under section 68 towards unsecured loans from companies on the allegation that upon physical verification, said companies were not found at the given addresses. Held: AO had conducted inquiry with regard to assessment proceedings and on inquiry, it transpired that creditor companies were not genuine. Thus, the burden shifted on assessee to controvert material brought on record by AO. It was noticed that assessee had failed to produce any contrary material to controvert evidence brought on record by AO. Thus, addition was justified.
Relied:CIT v. Orissa Corporation Pvt. Limited (1986) 159 ITR 78 (SC) : 1986 TaxPub(DT) 1425 (SC), Aravali Trading Co. v. ITO (2008) 220 CTR 622 (Raj.) : 2008 TaxPub(DT) 0495 (Raj-HC), Nitin Raj Jain v. ITO [ITA No. 69/JP/2018, dt. 145-2019].
REFERRED :
FAVOUR : Against the assessee.
A.Y. :
IN THE RAJASTHAN HIGH COURT
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