#burden of proof in income tax

The ITAT Lucknow deleted a Rs. 6.02 lakh addition under Section 68, ruling that tax authorities cannot treat cash credits as unexplained income merely because the creditor’s income tax returns or financial statements were not submitted. The burden shifts to the department to conduct a proactive inquiry - not just demand impossible documentation from the assessee - reinforcing that conjecture has no place in reassessment proceedings.