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2015 (1) TMI 1399 - ITAT MUMBAIAddition u/s 68 - Held that:- If the revenue authorities had any information then, without the knowledge of the assessee, the same was exchanged by the AOs and consequently held against the assessee. In this proceeding, assessee was not even involved. It is a fact that the assessee did not have any dealings with either Hitech or Citibase Multimedia. This fact, even the revenue authorities were not able to controvert. In the statement of Mr. N C Trivedi, proprietor of Hitech, had submitted the sales tax no., its stock accounts and the bank statements and he had stated that Hitech who had a turnover of over 5.60 crores had advanced funds to LFPL. But the revenue authorities went further and quizzed the director of Citibase Multitrade, who stated that they were providing book entries. Probably, this was the reason, why the revenue authorities had been using the pharse, “unholy nexus”. If the learned AO was in possession of any such information, why instead of supplying the same to respective AO of said parties, the same was used against appellant as there is no connection whatsoever between us and the dealings of said parties. Once the creditor was established, there was no occasion for the revenue to go further to find out whether creditor of creditor was also genuine and creditworthy. Meaning whereby, as in the appeal before us, the AO of Hightech should have corresponded that the transaction with Hightech and LFPL was not genuine. - Decided in favour of assessee
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