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2014 (12) TMI 174 - ITAT AMRITSARDeletion of additions of creditors – Onus discharged by assessee regarding genuineness of transactions - Held that:- The assessee has declared a better G.P. rate at 6.07% as compared to 3.24% in the preceding year and 3.07% in the year before preceding year - the AO issued letters u/s 133(6) of the Act, out of which 14 letters returned back unserved - he requested the AO to serve the notices through notice server but instead the AO confronted the assessee vide order-sheet dated 24.08.2009, that the onus lies on the assessee to establish the genuineness of the creditors and accordingly the assessee was asked to furnish name, address, and PAN on the copy of account - The assessee submitted the confirmation along with copies of account in the case of 12 creditors and confirmation with regard to the two creditors - none of the parties is having PAN - the arguments of revenue that it is necessary that each parties should have the PAN cannot be held correct, since as per Income-tax Act, it is only, when the income of a person exceeds the limit as prescribed the person is required to file Income Tax Return u/s 139(1) of the Act - the AO has not brought on record that any receipt of cash has been there in lieu of cheque payment made to the creditors - the assessee have discharged his onus, there is no infirmity in the order of CIT(A), who has rightly deleted the addition – Decided against revenue.
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