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1 - 7 of 7 (0.13 seconds)Commissioner Of Income-Tax, New ... vs East West Import & Export (P) Ltd.,(Now ... on 8 February, 1989
The above contention is also
supported by the decision of Hon'ble Apex Court in the case of CIT Vs
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ITA No.636/PN/2011, Kachrulal N. Mutha, Jalna,
Lovely Exports (P) Ltd. (2008) 216 CTR 195 has been held that once
the onus of proving the credit is discharged by the assessee, the
department is free to make enquiry of the creditors and take
necessary action in their cases.
Section 68 in The Income Tax Act, 1961 [Entire Act]
Aravali Trading Company, Nagaur vs Ito, Ward-1, Nagaur on 21 March, 2023
(xii) As the purchasers have accepted in their statements recorded on
oath, the fact of advancing the amount to the appellant and have also
stated source of the said amount advanced, the A.O. cannot ask the
appellant to explain the source of the source. It is well
established law that in such cases, the A.O. can make
enquiry/verification in the cases of the persons advancing the
amounts and take action in their cases if they fail to prove the
source of the amount advanced by them. This legal proposition is
supported by the decision of Hon'ble Rajasthan High Court in the
case of Aravali Trading Co. Vs ITO (2010) 187 Taxman 338 [220 CTR
622]. In this case, it has been held that once the existence the
creditors is proved and such persons own the credits, assessee's
onus stands discharged and he is not further required to prove the
source of the creditor and the addition cannot be sustained in the
absence of anything to establish that the source of the creditors'
deposits flew from the assessee itself.
The Income Tax Act, 1961
The Indian Contract Act, 1872
Section 131 in The Income Tax Act, 1961 [Entire Act]
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