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2015 (7) TMI 1230 - ITAT DELHIAddition on loans - non adherence to personal presence of the creditors - loans are through banking channel - creditors had died before completion of reassessment proceedings - Held that:- No hesitation to hold that the assessee discharge his onus establishing genuineness of the transaction and creditworthiness of the respective creditors and the Assessing Officer only stressed upon the personal presence of the creditors who had died before completion of reassessment proceeding. The AO and the CIT(A) have not undertaken any verification or examination from the assessment records of the respective creditors as per details and documentary evidence submitted by the assessee in the confirmation in the form of PAN number and assessment ward details. In this situation, addition u/s 68 of the Act cannot be made without demolishing the explanation and affidavit submitted by the assessee and without discharging the onus which was shifted by the AO after submission of explanation and all relevant documents by the assessee. Thus we hold that the addition made by the AO and upheld by the CIT(A) during the second round of proceeding cannot be held as sustainable and in accordance with letters and sprit of Section 68 of the Act specially when the assessee has shown by substantial evidence that the loans have been returned to the respective creditors then the addition u/s 68 of the Act cannot be held as correct and justified. Accordingly sole ground of the assessee is allowed.
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