Roshan Di Hatti v. CIT

107 ITR 938Supreme Court of India1977#147 most cited

What is Roshan Di Hatti v. CIT authority for?

An assessee bears the onus to prove the identity, creditworthiness, and genuineness of any cash credit or transaction. If the assessee fails to discharge this burden with cogent evidence and explanation, the Assessing Officer is justified in making additions to their income, and no further burden lies on the revenue.

477

judgments rely on this decision, according to BharatTax’s citation analysis of 367,154 Indian tax judgments — from 2015 to 2026.

Also referred to as

Roshan Di Hatti v. CIT · Section 68 · assessee onus of proof · cash credits · genuineness of transaction · identity of creditor · creditworthiness of creditor · additions to income · unexplained money · Section 143(3) · Section 147

Also reported as

2 SCC 378

Sections most often in play

Section 68Section 143(3)Section 147Section 142(1)Section 115BBESection 69ASection 148Section 144
Read the full judgment

Issues it is cited on

creditworthiness of the creditoronus of proofsource of sourceshare capital and share premiumpreponderance of probabilitysection 31paper companyaddition u/s 68survey under section 133aaddition under section 68share application moneygenuineness of the transaction

Judgments citing Roshan Di Hatti v. CIT

Grafton Merchant Pvt. Ltd., Kolkata vs. DCIT, Circle-1(1)/Kolkata

ITA 230/KOL/2023[2010-11]Status: DisposedITAT Kolkata21 Aug 2024AY 2010-11

Bench: Sri Rajpal Yadav, Vice- & Sri Sanjay Awasthi

Section 131Section 250Section 263Section 68

…the Hon'ble Apex Court has dealt with the issue from legal perspective and sum of the passages deserve to be extracted for reference: “This Court in the land mark case of Kale Khan Mohammad Hanif v. CIT [1963] 50 ITR 1 (SC) and, Roshan Di Hatti v. CIT [1977] 107 ITR 938 (SC) laid down that the onus of proving the source of a sum of money found to have been received by an assessee, is on the assessee. Once the assessee has submitted the documents relating to identity, genuineness of the transaction, and creditworthiness, then the Assessing Officer must conduct an inquiry, and call for more details before invoking…

Mohd Umeed, Delhi vs. Income Tax Officer, Delhi

In the result, the appeal of the assessee is allowed

ITA 327/DEL/2024[2017-18]Status: DisposedITAT Delhi14 Aug 2024AY 2017-18

Bench: Dr. B. R. R. Kumar, Sh. Sudhir Kumar

For Appellant: Sh. Shailesh Gupta, AdvFor Respondent: Sh. Anshul, Sr. DR
Section 143(1)Section 143(3)Section 694Section 69A

…ere the name of 4 Mohd. Umeed purchasers are to be entered. Therefore, the source of cash deposits with respect to the cash sates cannot be accepted. 7. The AO placing reliance on the judgment of Hon’ble Apex Court in the case of Roshan Di Hatti vs. CIT (SC) 107 ITR 938 and KaleKhan Mohammad Hanif vs. CIT (SC) 50 ITR 1 wherein it was held that the onus of providing the source of money found to have been received by an assessee is on him and when the nature and source of a receipt cannot be satisfactorily explained by the assessee, it is open to the revenue to hold that it is income of the assessee and no further…

Deputy Commissioner of Income Tax, Aurangabad vs. Marsh Fincom Pvt. Ltd., Mumbai

In the result, the appeal filed by the Revenue stands dismissed

ITA 1342/PUN/2023[2010-11]Status: DisposedITAT Pune13 Aug 2024AY 2010-11

Bench: Shri R. K. Panda & Shri Vinay Bhamoreआयकर अपील सं. / Ita No.1342/Pun/2023 िनधा"रण वष" / Assessment Year: 2010-11 Dcit, Aurangabad. Vs. Marsh Fincom Pvt. Ltd., 9Th Floor, Gold Crest, Ns Road No.10, Jvpd Scheme, Vile Parle (W), Mumbai- 400049. Pan : Aabck0760B Appellant Respondent Assessee By : Shri Deepak Shah Revenue By : Shri Sourabh Nayak Date Of Hearing : 26.06.2024 Date Of Pronouncement : 13.08.2024 आदेश / Order Per Vinay Bhamore, Jm: This Appeal Filed By The Revenue Is Directed Against The Order Dated 07.09.2023 Passed By Ld Cit(A)-12, Pune For The Assessment Year 2010-11. 2. The Revenue Has Raised The Following Grounds Of Appeal :- “1. Whether On The Facts & In The Circumstances Of The Case & In Law, The Ld. Cit(A) Has Erred In Law & In Facts By Quashing Proceedings U/S. 153A In Respect Of Assessee Where The Assessee’S Case Was Covered Under Section 132 Of The Act Dated 20.08.2014. 2. Whether On The Facts & In The Circumstances Of The Case & In Law, The Ld. Cit(A) Has Erred In Holding That The Ao Has Made

For Appellant: Shri Deepak ShahFor Respondent: Shri Sourabh Nayak
Section 132Section 132(4)Section 143(3)Section 153ASection 68

…IN THE INCOME TAX APPELLATE TRIBUNAL PUNE BENCH “B”, PUNE BEFORE SHRI R. K. PANDA, VICE PRESIDENT AND SHRI VINAY BHAMORE, JUDICIAL MEMBER आयकर अपील सं. / ITA No.1342/PUN/2023 िनधा"रण वष" / Assessment Year: 2010-11 DCIT, Aurangabad. Vs. Marsh Fincom Pvt. Ltd., 9th Floor, Gold Crest, NS Road No.10, JVPD Scheme, Vile Parle (W), Mumbai- 400049. PAN : AABCK0760B Appellant Respondent Assessee by : Shri Deepak Shah Revenue by : Shri Sourabh Nayak Date of hearing : 26.06.2024 Date of pronouncement : 13.08.2024 आदेश / ORDER PER VINAY BHAMORE, JM: This appeal filed by the Revenue is directed against the order dated 07.09.…

Smt. Permila Devi Yadav, Alwar vs. ITO, Ward-Behror, Alwar

In the result, the appeal of the assessee is allowed

ITA 345/JPR/2024[2010-11]Status: DisposedITAT Jaipur02 Aug 2024AY 2010-11

Bench: SHRI SANDEEP GOSAIN (Judicial Member)

For Appellant: Shri P.C. Parwal, CAFor Respondent: Mrs. Monisha Choudhary, Addl. CIT-DR

…d justified reason which was rightly deleted by the CIT(A). Hence, both the grounds of the assessee are being devoid of merits and dismissed 2.4 I have also gone through the cases referred by the revenue authorities in its order i.e. Roshan the Hatti vs CIT 107 ITR 938 SC. However the contents contained in the said case are not applicable in the facts of the present case because assessee introduced a capital of Rs 3,33,414/- at the start of the business on 30.03.1948 comprising of gold ornaments, stones, bank & cash balances. AO treated only Rs.20,000/- as explained & made addition for balance. CIT(A) considere…

M/S. Nexcare Agency Pvt. Ltd., Kolkata vs. I.T.O., Ward - 7(1), Kolkata

In the result, the appeal filed by the assessee is dismissed

ITA 35/KOL/2023[2012-2013]Status: DisposedITAT Kolkata26 Jul 2024AY 2012-2013

Bench: Sri Rajpal Yadav, Vice- & Sri Sanjay Awasthi

Section 131Section 133(6)Section 143(3)Section 263Section 56(2)(viib)Section 68

…on'ble Apex Court has dealt with the issue from a legal perspective and some of the passages deserve to be extracted for reference: “■ This Court in the land mark case of Kale Khan Mohammad Hanif v. CIT [1963] 50 ITR 1 (SC) and, Roshan Di Hatti v. CIT [1977] 107 ITR 938 (SC) laid down that the onus of proving the source of a sum of money found to have been received by an assessee, is on the assessee. Once the assessee has submitted the documents relating to identity, genuineness of the transaction, and creditworthiness, then the Assessing Officer must conduct an inquiry, and call for more details before invoking…

Gilt Commodities Pvt. Ltd., Kolkata vs. I.T.O., Ward-3(1), Kolkata

In the result, the appeal filed by the assessee is allowed

ITA 1447/KOL/2019[2014-15]Status: DisposedITAT Kolkata23 Jul 2024AY 2014-15

Bench: Sri Rajpal Yadav, Vice- & Sri Sanjay Awasthi

…e of “PCIT v/s NRA Iron & Steel (P) Ltd.” reported in [2019] 103 taxmann.com 48(SC) has taken note of the observations made by the Supreme Court in the land mark case of “Kale Khan Mohammed Hanif v. CIT”[1963] 50 ITR 1 (SC) and “Roshan Di Hatti v. CIT” [1977] 107 ITR 938 (SC) laying down the proposition that the onus of proving the source of a sum of money found to have been received by an assessee, is on the assessee. Once the assessee has submitted the documents relating to identity, genuineness of the Page 15 of 26 I.T.A. No.: 1447/KOL/2019 Assessment Year: 2014-15 Gilt Commodities Pvt. Ltd. transaction, and…

M/S Asha Technologies, Kala Amb vs. ITO, Sirmour

In the result, both the above appeals of the Assessee are partly allowed as aforesaid in respect of impugned orders dt

ITA 61/CHANDI/2013[2009-10]Status: DisposedITAT Chandigarh19 Jul 2024AY 2009-10

Bench: SHRI. VIKRAM SINGH YADAV (Accountant Member), SHRI. PARESH M. JOSHI (Judicial Member)

For Appellant: Shri Vishal Mohan, Sr. Advocate with Shri Aditya Sood, AdvocateFor Respondent: Shri Sarabjeet Singh, CIT, DR
Section 142(1)Section 143(2)Section 250Section 253Section 80I

…Sept 2006 and as such the same could not have been attributed to the firm. If at all the said addition was to be made, the same could have been made in the hands of the partners and not the firm. Reliance in this regard was placed on the following judgments:- 107 ITR 938 page (S.C.) 1. 2. 83 ITR 187 page (S.C.) The Ld. CIT(A) has held as follows: “8. The rival submissions have been carefully considered with reference to the facts of the case. It is noted that in continuation of the findings dealt with in ground 5 above, the Id. A.O. further discovered the cash deposits amounting to Rs. 15 lakhs in account No. 3…

M/S Asha Technologies, Sirmour vs. Addl. CIT, Solan

In the result, both the above appeals of the Assessee are partly allowed as aforesaid in respect of impugned orders dt

ITA 388/CHANDI/2012[2007-08]Status: DisposedITAT Chandigarh19 Jul 2024AY 2007-08

Bench: SHRI. VIKRAM SINGH YADAV (Accountant Member), SHRI. PARESH M. JOSHI (Judicial Member)

For Appellant: Shri Vishal Mohan, Sr. Advocate with Shri Aditya Sood, AdvocateFor Respondent: Shri Sarabjeet Singh, CIT, DR
Section 142(1)Section 143(2)Section 250Section 253Section 80I

…Sept 2006 and as such the same could not have been attributed to the firm. If at all the said addition was to be made, the same could have been made in the hands of the partners and not the firm. Reliance in this regard was placed on the following judgments:- 107 ITR 938 page (S.C.) 1. 2. 83 ITR 187 page (S.C.) The Ld. CIT(A) has held as follows: “8. The rival submissions have been carefully considered with reference to the facts of the case. It is noted that in continuation of the findings dealt with in ground 5 above, the Id. A.O. further discovered the cash deposits amounting to Rs. 15 lakhs in account No. 3…

J C Home Tex, Jaipur vs. Assistant Commissioner of Income Tax Circle - 7, Jaipur

ITA 292/JPR/2024[2016-17]Status: DisposedITAT Jaipur10 Jul 2024AY 2016-17
For Appellant: Sh. Tarun Mittal, CA &For Respondent: Sh. Anoop Singh (Addl. CIT)
Section 133ASection 142(1)Section 143(1)Section 143(2)Section 143(3)Section 145(3)

…disclosed sources of the person or the source from which such cash was sourced and even in such a scenarios the excess stock would be over and above the gross profit ratio. Be that as it may, in the case of Roshan Di Hatti v. Commissioner of Income-tax [1977] 107 ITR 938 (SC)[08-03-1977] it is held by the Hon'ble Supreme Court as under:- "Now, the law is well settled that the onus of proving the source of a sum of money found to have been received by an assessee is on him. If he disputes the liability for tax, it is for him to show either that the receipt was not income or that if it was, it was exempt from taxat…

Florence Dealer Pvt Ltd, Kolkata vs. ITO Ward 9(2), Kolkata

In the result, the appeal of the assessee stands allowed

ITA 837/KOL/2023[2012-13]Status: DisposedITAT Kolkata02 Jul 2024AY 2012-13

Bench: Shri Sanjay Garg (Judicial Member), Dr. Manish Borad (Accountant Member)

Section 131Section 142(1)Section 250Section 68

…hon’ble Supreme Court in the case of “PCIT v/s NRA Iron & Steel (P) Ltd.” (supra) has taken note of the observations made by the Supreme Court in the “the land mark case of Kale Khan Mohammed Hanif v. CIT [1963] 50 ITR 1 (SC) and Roshan Di Hatti v. CIT [1977] 107 ITR 938 (SC) laid down that the onus of proving the source of a sum of money found to have been received by an assessee, is on the assessee. Once the assessee has submitted the documents relating to identity, genuineness of the transaction, and credit-worthiness, then the AO must conduct an inquiry, and call for more details before invoking Section 68. I…

ITO, Ward-24(1), New Delhi vs. Sun Intrastate Pvt. Ltd., New Delhi

In the result, the appeals of the Revenue are dismissed

ITA 1470/DEL/2023[2018-19]Status: DisposedITAT Delhi02 Jul 2024AY 2018-19

Bench: Sh. Kul Bharatdr. B. R. R. Kumar

For Appellant: Sh. Gautam Jain, Adv. &For Respondent: Ms. Deepti Chandola, Sr. DR
Section 131Section 133(6)Section 142(1)Section 147Section 148Section 68

…ssee, it is open for the revenue to hold that it is the income of the assessee and no further burden lies on the revenue to show that the income is from any particular source as enumerated the Hon'ble Supreme court n the case of Roshan Di Hatti vs. CIT [1977] 107 ITR 938 (SC) and Kale Khan Mohammad Hanif v. CIT [1963] 50 ITR 1 (SC). The Human Probability Tests were laid down for the first time in the case of CIT vs. Durga Prasad More (1971) 82 ITR 540 (SC) as: “11. The Tribunal disbelieved the story, which is, prima facie, a fantastic story. It is a story that does not accord with human probabilities. It is str…

ITO, Ward-24(1), New Delhi vs. Sun Intrastate Pvt. Ltd., New Delhi

In the result, the appeals of the Revenue are dismissed

ITA 1469/DEL/2023[2016-17]Status: DisposedITAT Delhi02 Jul 2024AY 2016-17

Bench: Sh. Kul Bharatdr. B. R. R. Kumar

For Appellant: Sh. Gautam Jain, Adv. &For Respondent: Ms. Deepti Chandola, Sr. DR
Section 131Section 133(6)Section 142(1)Section 147Section 148Section 68

…ssee, it is open for the revenue to hold that it is the income of the assessee and no further burden lies on the revenue to show that the income is from any particular source as enumerated the Hon'ble Supreme court n the case of Roshan Di Hatti vs. CIT [1977] 107 ITR 938 (SC) and Kale Khan Mohammad Hanif v. CIT [1963] 50 ITR 1 (SC). The Human Probability Tests were laid down for the first time in the case of CIT vs. Durga Prasad More (1971) 82 ITR 540 (SC) as: “11. The Tribunal disbelieved the story, which is, prima facie, a fantastic story. It is a story that does not accord with human probabilities. It is str…

Shobha Tomar, Jaipur vs. DCIT, C.C.1, Jaipur

In the result, the appeal of the assessee is allowed

ITA 373/JPR/2024[A.Y. 2017-18]Status: DisposedITAT Jaipur01 Jul 2024

Bench: DR. S. SEETHALAKSHMI (Judicial Member)

For Appellant: Shri G. M. Mehta, CAFor Respondent: Shri Anoop Singh, Addl. CIT
Section 115BSection 143(2)Section 143(3)Section 145(3)Section 44ASection 68

…of Income-tax v. P. Mohanakala 5 [1963] 50 ITR 1 (SC) SUPREME COURT OF INDIA Kale Khan Mohammad Hanif v. Commissioner of Income-tax 6 [2019] 109 taxmann.com 53 (SC) SUPREME COURT OF INDIA NDR Promoters (P.) Ltd.v. Principal Commissioner of Income-tax 7 [1977] 107 ITR 938 (SC) SUPREME COURT OF INDIA Roshan Di Hatti v. Commissioner of Income-tax 8 [1963] 49 ITR112 (SC) SUPREME COURT OF INDIA Sreelekha Banerjee v. Commissioner of Income-tax 9 [2007] 162 TAXMAN 459 (SC) SUPREME COURT OF INDIA Commissioner of Income-tax, Salem v.K. Chinnathamban 10 [1995] 82 TAXMAN 31 (CAL.) HIGH COURT OF CALCUTTA Commissioner of Inco…

Shrey Associates, Jaipur vs. ACIT, Circle-3, Jaipur

26. For the foregoing reasons and discussion, finding merit in the contentions raised on behalf of the assessee as regards the only challenge to the addition of Rs

ITA 127/JPR/2024[2017-18]Status: DisposedITAT Jaipur24 Jun 2024AY 2017-18

Bench: DR. M.L. MEENA, AM, SHRI NARINDER KUMAR (Judicial Member)

For Appellant: Shri K.L. Moolchandani (I.T.P.)For Respondent: Shri Anil Dhaka (CIT)
Section 143(1)Section 143(2)Section 143(3)Section 68

…the following cases:- (1) CIT vs. Durga Prasad More, (1971) 82 ITR 540. (2) Sumati Dayal vs. CIT, 1995 AIR 2109, 1995 SCC Supl.(2) 453. (3) Kale Mohammad Hanif vs. CIT, (1963) 50 ITR 1 (SC), and 8 Shrey Associates vs. ACIT (4) Roshan D-Hatti vs. CIT, (1977) 107 ITR 938 (SC). 20. As per assessment order, the Assessing Officer took into consideration certain facts so as to reject the books of accounts of the assessee u/s 145(3) of the Act, while observing that same were not verifiable. 21. Learned Assessing Officer observed that the assessee was required to furnish details of project wise receipts and expenditur…

Sanjeev Kumar Goyal, Fatehabad vs. DCIT, CC-2, Ludhiana

In the result, the appeal of the assesse is allowed

ITA 80/CHANDI/2023[2019-20]Status: DisposedITAT Chandigarh22 May 2024AY 2019-20

Bench: This Hon’Ble Tribunal Under Section 253 Of The Income Tax Act, 1961 As Amended From Time To Time. 2. The Assessee Is Aggrieved By The Order Of The Ld. Cit(A) Dt. 20/01/2023 In Appeal No. 10853/2018-19/It/Cit(A)-5/Ldh/2021-22 For The A.Y. 2019-20 Under Section 250(6) Of The Income Tax Act, 1961 Which Was Dismissed. Therefore The Present Second Appeal Under Section 253 Of The Income Tax Act, 1961 Before Us Against The Aforesaid Order Dt. 20/01/2023 Which Is Hereinafter Referred To As The Impugned Order.

For Appellant: Shri Sudhir Sehgal, Advocate and Shri Rishaba Marwaha, C.AFor Respondent: Shri Dharamvir, JCIT, Sr. DR
Section 143(2)Section 250(6)Section 253Section 68

…dered during the survey was not reflected in the books of accounts and the source from where it was derived was not declared, the same was assessable as deemed income u/s 69A of the Act. The Hon'ble Supreme Court in the cases of Roshan Di Hatti vs. CIT [1977] 107 ITR 938 (SC) and Kale Khan Mohammad Hanif vs. CIT [1963] 50 ITR 1 (SC) held that the law is well-settled that the onus of proving the source of a sum of money found to have been received by an assessee is on him. Where the nature and source of a receipt, whether it be of money or other properly, cannot be satisfactorily explained by the assessee, it is o…

ITO, Ward-1, Narnaul vs. Ashok Kumar Gupta, Narnaul

In the result, the appeal filed by the Revenue is dismissed

ITA 944/DEL/2020[2009-10]Status: DisposedITAT Delhi17 May 2024AY 2009-10

Bench: Shri Kul Bharat & Dr.B.R.R.Kumar

Section 144Section 44ASection 69

…rtly allowed. 6.2.5 The burden of proof regarding the cash deposits is on the assessee both in the case of cash credit and money deposited in the bank account, as held in the following decisions- The Supreme Court in the cases of Roshan Di Hatti v. CIT (1977) 107 ITR 938 (SC) and Kale Khan Mohammad Hanif v. CIT [1963) 50 ITR 1 (SC) held that the law is well- settled that the onus of proving the source of a sum of money found to have been received by an assessee is on him Where the nature and source of a receipt, whether it be of money or other property, cannot be satisfactorily explained by the assessee, it is op…

ITO, Ward-1, Narnaul vs. Ashok Kumar Gupta, Narnaul

In the result, the appeal filed by the Revenue is dismissed

ITA 943/DEL/2020[2008-09]Status: DisposedITAT Delhi17 May 2024AY 2008-09

Bench: Shri Kul Bharat & Dr.B.R.R.Kumar

Section 144Section 44ASection 69

…rtly allowed. 6.2.5 The burden of proof regarding the cash deposits is on the assessee both in the case of cash credit and money deposited in the bank account, as held in the following decisions- The Supreme Court in the cases of Roshan Di Hatti v. CIT (1977) 107 ITR 938 (SC) and Kale Khan Mohammad Hanif v. CIT [1963) 50 ITR 1 (SC) held that the law is well- settled that the onus of proving the source of a sum of money found to have been received by an assessee is on him Where the nature and source of a receipt, whether it be of money or other property, cannot be satisfactorily explained by the assessee, it is op…

Nitin Nagarji Mehta, Mumbai vs. Income Tax Officer, Ward 25(3)(5) Mumbai, Mumbai

In the result, all the three appeals of the assessee are dismissed

ITA 4821/MUM/2023[2017-18]Status: DisposedITAT Mumbai14 May 2024AY 2017-18

Bench: Shri Om Prakash Kant & Shri Raj Kumar Chauhan

For Appellant: ----- None -----For Respondent: Shri Sunil Shinde, Sr. A.R
Section 144Section 147Section 68

…he entire cash deposit in the bank account. This argument, though not specifically made by the assessee, can also be extended to the addition made by the AO in respect of income determine on account of sale of property. 5.2.2 in Roshan Di Hatti Vs. CIT [1977] 107 ITR 938 (SC), it was held that the onus of proving the source of money found to have been received by an assessee is on him, if he disputes, it is not liable to tax, it is for him to show either that the receipt was not income or that if it was, it was exempt from taxation and in the absence of such proof the revenue is entitled to treat it as taxable in…

Nitin Nagarji Mehta, Mumbai vs. Asst. Commissioner of Income Tax, Circle 32(2), Mumbai

In the result, all the three appeals of the assessee are dismissed

ITA 4820/MUM/2023[2014-15]Status: DisposedITAT Mumbai14 May 2024AY 2014-15

Bench: Shri Om Prakash Kant & Shri Raj Kumar Chauhan

For Appellant: ----- None -----For Respondent: Shri Sunil Shinde, Sr. A.R
Section 144Section 147Section 68

…he entire cash deposit in the bank account. This argument, though not specifically made by the assessee, can also be extended to the addition made by the AO in respect of income determine on account of sale of property. 5.2.2 in Roshan Di Hatti Vs. CIT [1977] 107 ITR 938 (SC), it was held that the onus of proving the source of money found to have been received by an assessee is on him, if he disputes, it is not liable to tax, it is for him to show either that the receipt was not income or that if it was, it was exempt from taxation and in the absence of such proof the revenue is entitled to treat it as taxable in…

Nitin Nagarji Mehta, Mumbai vs. Income Tax Officer, Ward 25(3)(5), Mumbai

In the result, all the three appeals of the assessee are dismissed

ITA 4819/MUM/2023[2012-13]Status: DisposedITAT Mumbai14 May 2024AY 2012-13

Bench: Shri Om Prakash Kant & Shri Raj Kumar Chauhan

For Appellant: ----- None -----For Respondent: Shri Sunil Shinde, Sr. A.R
Section 144Section 147Section 68

…he entire cash deposit in the bank account. This argument, though not specifically made by the assessee, can also be extended to the addition made by the AO in respect of income determine on account of sale of property. 5.2.2 in Roshan Di Hatti Vs. CIT [1977] 107 ITR 938 (SC), it was held that the onus of proving the source of money found to have been received by an assessee is on him, if he disputes, it is not liable to tax, it is for him to show either that the receipt was not income or that if it was, it was exempt from taxation and in the absence of such proof the revenue is entitled to treat it as taxable in…