HIGH COURT OF MADRAS

Commissioner of Income-tax v. Mark Hospitals (P.) Ltd

Section 68 of the Income-tax Act, 1961 – Cash credit (Burden of proof) – Assessment year 2006-07 – Assessee had obtained unsecured loans from agriculturists and submitted their names and addresses, but did not provide their PAN cards – Assessing Officer made addition under section 68 – It was found that loans were given to assessee through cheques and all creditors had confirmed that they had advanced loans mentioned against their names to assessee and, thus, identity of creditors could not be disputed – Further, all creditors were agriculturists and therefore, they did not have PAN card – Whether, on facts, no addition could be made – Held, yes [Para 6] [In favour of assessee]