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)
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)
