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Unexplained cash credit u/s 68 of IT act

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This query is : Resolved

Dhaval Desai (Querist)

02 June 2009 AO has treated the loans as unexplained cash credit.
The assessee has received the loans through banking channels. The assessee has requested the lenders to submit the bank statements & confirmation letters and the same has been submitted during appeal proceedings.
To prove the guineness of the loans the department wants to prove the identity of the lenders but the lenders are not attending.
In such situations What will be your advise? and give us any case laws in this regards.

I know that The onus of proving the genuineness of the transaction is on the assessee. But i have sent them letters to attend & they had replied that they would attend but they didn't
,so why i should be punished for it
The assessee would do his business or do all this things.

Bhaskaran Chackrapani Warrier

Bhaskaran Chackrapani Warrier (Expert)

05 June 2009 The loan amount should not be added to the assessee's income an penalty,if any,u/s 271(1)(c) also should not be levied in view of the decision in:-

Orissa Corporation (P) Ltd Vs CIT (1986) 159 ITR 78 (SC).

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