TMI Blog2014 (8) TMI 679X X X X Extracts X X X X X X X X Extracts X X X X ..... s - it cannot be charged as the assessee's income in the absence of any material to indicate that they belong to the assessee. Relying upon Orient Trading Co. Ltd. v. CIT [1962 (8) TMI 69 - BOMBAY HIGH COURT] - If the AO had any doubts about the entry, instead of drawing any inference, the AO could have summoned the proprietor of the firm - No attempt was made by the AO to ascertain the factum of clearance of cheque from the bank and subsequent refund of the amount – thus, the assessee had sufficiently discharged the burden which lay upon it to explain the nature and source of the credit entry appearing in its accounts and the burden clearly shifted on to the Department to prove to the contrary and hold that in spite of the assessee's ex ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... that as per the provisions of section 68 of the Income-tax Act, the onus to establish the genuineness of the transaction lies upon the assessee and the assessee having been miserably failed to discharge the onus ? 2. Whether the Income-tax Appellate Tribunal was right in holding that failure to issue summons under sections 133(1) to the creditor was sufficient to delete the addition, though the onus to establish the genuineness of the transaction was upon the assessee ? 3. Whether the Income-tax Appellate Tribunal has erred in law in recording a finding that the addition made on the basis of satisfaction recorded by the Assessing Officer to the effect that M/s. Vishnu Jewellers was engaged in providing 'accommod ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... The Tribunal came to the conclusion that since the credit and debit transactions were made through account payee cheques and more particularly when the assessee had established the identity of the creditor, the genuineness of the entry could not be doubted. The Tribunal accordingly, vide order dated December 1, 2006 (annexure A-2) allowed the appeal of the assessee and directed deletion of the addition. 6. Aggrieved with the order, the Revenue has come up before this court impugning the order passed by the Tribunal. 7. We have heard the learned counsel for the appellant-Revenue as well as for the respondent and have perused the paper-book carefully. 8. The factual aspect of the case is not in dispute. The whole controversy between ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ries regarding credit in a third party's account were in fact received from the third party and are genuine, he has discharged the onus. In that case, it cannot be charged as the assessee's income in the absence of any material to indicate that they belong to the assessee. Reference can be placed on Orient Trading Co. Ltd. v. CIT [1963] 49 ITR 723 (Bom). 10. It has come on record that the assessee-respondent received the amount by way of an account payee cheque. The amount was returned by way of an account payee cheque. The transactions were reflected in the bank accounts of the assessee as well as the creditor. The firm, M/s. Vishnu Jewellers, was an income-tax assessee. Its PAN card was placed on record. The assessee had file ..... X X X X Extracts X X X X X X X X Extracts X X X X
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