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2016 (3) TMI 1245 - HC - Income TaxAddition u/s 68 - prove the genuineness and creditworthiness of creditors - Held that:- No doubt it is duty of the assessee to prove the genuineness and creditworthiness of his creditors, but when all the transactions in this case have been routed through banks and the complete particulars have been furnished by the assessee, which have not been disputed by the Assessing Officer, the Assessing Officer was required to ensure the presence of creditors by using coercive method and not to proceed summarily. . As far as the question of disbelieving the statement of affairs and cash flow statement filed by on or behalf of the creditors in the face of the fact that they had filed return declaring income of about ₹ 1 lac is concerned, the same has been disbelieved on the basis of conjectures and surmises. Because it varies from person to person to maintain the books of accounts even if, their income is meager. Merely on the basis of the fact that the income was about ₹ 1 lac the statement of books of accounts cannot be disbelieved. When all these facts are further examined in the light of the undisputed fact that all the documents to prove the genuineness and creditworthiness of S/Sh. Netram Goel, Anil Kumar Bansal, Mahender Pratap Singh, Ajay Kumar Jain, Virender Kumar, Vikas Kumar & Ms. Manju Rani lying at pages 92 to 160A of the Paper Book having been perused by the Assessing Officer and the loan amount in question borrowed by the assessee has since been repaid by the assessee by way of account payee cheques prior to 2009, the order passed by the ld. CIT(A) is not sustainable in the eyes of law. Thus the assessee has duly discharged the onus upon him to prove the genuineness and creditworthiness of his creditor to prove the loan of ₹ 8 lacs, otherwise proved to have been paid by way of cheques and as such the addition made to his income is not sustainable. - Decided in favour of assessee.
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