Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2016 (10) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2016 (10) TMI 1013 - AT - Income TaxAddition made u/s.68 - genuineness of transaction - capacity of the creditors - Held that:- In support of the genuineness of the transaction, not only the assessee filed the affidavits of 20 persons but each of the 20 persons appeared before the Assessing Officer in compliance to the summons issued u/s.131 of the Act and duly confirmed the genuineness of transaction before the Assessing officer. AO has merely stated that the creditors had meager income without bringing on record any material in support of the same. Such vague and unspecific and unsubstantiated observation has no value in the eyes of law. Therefore, considering the entirety of the facts of the case, find that the explanation of the assessee which was a plausible explanation was rejected by the Assessing Officer merely on the basis of suspicion or doubt and without bringing on record any positive material even after examining all the 20 persons under section 131 of the Act. A plausible explanation offered by the assessee cannot be so rejected by the Assessing Officer without bringing even an iota of material on record and even pointing out any inconsistency in the statement of the creditors recorded u/s.131 of the Act. See Sreelekha Banerjee vs CIT (1963 (3) TMI 47 - SUPREME COURT) wherein, held that the department cannot by merely rejecting unreasonably a good explanation convert good proof into no proof. - Decided in favour of assessee
|