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2016 (3) TMI 1224 - ITAT CHANDIGARHAddition under section 68 - proof the creditworthiness of the creditors and genuineness of the transactions - Held that:- Restore the matter in issue to the file of the Assessing Officer with direction to the assessee to produce all the four creditors before the Assessing Officer for verification and examination and the assessee shall not seek unnecessary adjournment in the matter. The assessee is directed to prove the creditworthiness of the creditors and genuineness of the transactions and also directed to explain as to in what circumstances the commodity profits have been received by the creditors from M/s Satyam Commodities and M/s B.K. Commodities from whom the assessee was also taking commodity entries. Assessing Officer shall give reasonable sufficient opportunity of being heard to the assessee. I make it clear that in case the assessee fails to produce any of the creditors before the Assessing Officer, the Assessing Officer is at liberty to draw any adverse inference against the assessee and shall pass assessment order in accordance with law, strictly on merits of the case, as have been discussed and considered in the assessment order. Appeal of the assessee is allowed for statistical purposes.
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