ITAT's Guidelines to AOs for making additions under section 68

 

ITAT's Guidelines to AOs for making additions under section 68


a) No additions in respect of loan repayments can be made under section 68; additions cannot exceed new loans/credits received during year;

b) Opinion of AO that explanation offered by assessee is not satisfactory is required to be based on proper appreciation of material and other attending circumstances available on record; once explanation of assessee is found unbelievable or false, AO is not required to bring positive evidence on record to treat amount in question as income of assessee;

c) Evidence produced by assessee cannot be brushed aside in a causal manner; assessee cannot be asked to prove impossible; explanation about 'source of source' or 'origins of origin' cannot and should not be called for while making inquiry under section 68;

d) Burden of proof under section 68 cannot be discharged to hilt - such matters are decided on particular facts of case as well as on basis of preponderance of probabilities; credibility of explanation, not materiality of evidences, is basis for deciding cases falling under section 68 - ITO VS. ANANT SHELTERS (P.) LTD. [2012] 20 taxmann.com 153 (Mumbai - ITAT)