Sec. 68 of Income Tax Act, 1961— cash credit —The assessee was a private company and claimed to be engaged in the business of food processing. During the assessment proceedings the AO observed that the assessee during the year has accepted unsecured loan. Accordingly the AO vide notice dated 14-10-2013 requires the assessee to furnish the detail of loan accepted during the year and evidences with respect to genuineness of the transaction and identity & credit worthiness of the lender. The AO in absence of documentary evidence treated the sum as unexplained cash credit under section 68 of the Act and added to the total income of the assessee. Assessee preferred an appeal before CIT (A). The CIT (A) in the absence of sufficient documentary evidence such as copy of bank statement and other documentary evidence in order to prove credit worthiness confirmed the addition made by the AO. Againstthe order of the learned CIT (A) the assessee is in appeal before Tribunal.

The assessee was following mercantile system of accounting. Therefore, the assessee, was under the obligation to offer the impugned income tax in the year under consideration. Accordingly, Tribunal confirm the order of the authorities below subject to the direction that the AO shall verify the fact whether the assessee has offered interest income in any of the succeeding year then the AO shall extend the relief the assessee in that assessment year. It is the settled law that income cannot be taxed twice. Accordingly, tribunal dispose of the ground of appeal of the assessee. The appeal of the assessee was partly allowed. --- JAP AGRO FOODS PVT. LTD vs. ITO.[2020] 23 ITCD Online 63 (AHD)