Log In

| Recover password


In order to avoid the application of section 68, all that the law requires from the assessee is a satisfactory explanation of the source.


In 245ITR160 the assessee produced before the assessing officer the person who deposited the credit. The MP High Court held that when cash credit is found in the assessee-firm’s books and the assessee has established that amount has been invested by a particular person, the responsibility of the firm is over and there is no requirement on part of the assessee-firm to further show whether amount invested has been properly taxed in creditor’s hands. Thereupon it becomes the responsibility of the cash creditor to explain the source to avoid application of section 69.


This judgment found application in 18ITR (Trib) –OL 550 by Ahmedabad bench which stated that the assessee is not expected under the law to justify the source of money received by it

Leave a Reply

Your email address will not be published.

error: Do not copy the content of this website.