Section 68 of the Income Tax Act, 1961—Cash Credit — Source of the source — The  appellant is under no obligation to explain the source of the source.[2019] 51 ITCD 55 (GUJ)
Facts: (i) Whether on the facts and in circumstances of the case as well as on law the Tribunal was right in law in allowing partial relief of Rs. 5,00,000/- out of total addition made by AO of Rs. 18,26,730/-? (ii) Whether on the facts and in circumstances of the case, the tribunal has erred in law and on facts in not appreciating the facts that, the Appellant is under no obligation to explain the "Source of the source"? (iii) Whether on facts and circumstances of the case, Hon'ble Tribunal has erred in not deciding the ground in reference to challenge to the approval u/s. 151 of the Income Tax Act?
Held: Gujarat High Court held that the facts recorded by the tribunal need not to distrub. Tribunal held that there are no arguments before it to dislodge the findings of the CIT(A). All that the assessee has submitted is that the lenders have categorically confirmed the fact of giving loans, and, for that reason these credits should be held to be genuine. As regards the alleged gift of Rs. 4,00,000/- and accumulated past savings which are alleged to be Rs. 14,87,543, learned counsel has mainly placed reliance on the contentions before the authorities below and reiterated the same. None of these submissions, however, make much sense. As regards the alleged gift of Rs. 4,00,000/- and alleged borrowings of Rs. 1,53,100/- from friends and relatives, it see no reasons to deviate from the well reasoned findings of the CIT(A) which have remained uncontroverted. However, as regards the claim of Rs. 14,87,543/- as accumulated savings and agricultural income, it is of the view that since the assessee was having some agricultural income, an amount of Rs. 5,00,000/- can at best be treated as explained. To this extent, it uphold the plea of the assessee. In view of the above discussions, it uphold the addition to the extent of  Rs. 13,26,730/- and delete the addition to the extent of Rs. 5,00,000/-.