Acit, Sawai Madhopur vs Sampat Kumar Jain, Bundi on 4 August, 2017
"As regards Ground of appeal no. 5 regarding addition u/s 68 it is seen
that the lender has not been able to provide evidences in support of his
creditworthiness and all the statements remain unproved regarding
agricultural, interest or similar sources of income. Although the identity
of the lender is proved, however, as per section 68, unless the
genuineness & the creditworthiness of the lender is also beyond doubt,
the credit would be considered unexplained. Under the facts involved, it
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ITA No. 350/JP/2017 & CO No. 34/JP/2017
ACIT Vs Shri Dinesh Kumar, Bundi
is seen that the lender has not been able to prove his capacity or the
source of the amount lent beyond doubt so the credit cannot be held to
be explained within the meaning of section 68 and the addition of Rs.
5,00,000/- made by the AO is liable to be upheld."