07 December 2010
AN ASSESSEE RECEIVED US $ FROM HIS FATHER IN LAW IN CANADA. IN ASSESSMENT PROCEEDINGS, THE A.O. ASKED HIM TO EXPLAIN THE SOUCRCE OF AMOUNT CREDITED IN HIS BANK. HE FILED AN AFFIDAVIT FROM THE SENDER FOR HAVING SENT THE AMOUNT. NOW THE A.O. HAS ASKED THE ASSESSEE TO PROVE THAT HIS FATHER IN LAW HAD ADEQUATE SOURCES TO SEND THE AMOUNT. PLS. TELL CAN A.O. CAN FORCE THE ASSESSEE TO PROVE SOUCRCE OF SOURCE. WHILE THIS INFORMATION IS NOT IN CONTROL OF ASSESSEE NOR IN THE POSSESSION OF ASSESSEE.PLS. TELL ANY CASE LAWS IN FAVOUR OF ASSESSEE
07 December 2010
No, the AO can not force to provide the source of the source. The Assessee's responsibility is to provide his source. Though the AO can send a notice u/s 133(6) to other person to confirm the infomrmation with the assesee.
CAclubindia
