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2017 (6) TMI 1164 - AT - Income TaxUnexplained credits u/s. 68 - proof of guinity and creditworthiness of lenders - addition on protective basis - Held that:- On analysis of the investment account reveal that the company has made investment of ₹ 5,04,01,000/. The statement given by Sh. PN Jha assumes importance wherein he categorically admitted that the company was doing the business of investment and finance and during the year the bank accounts of the company have been used to provide the accommodation entries. The addition of ₹ 3,17,67,951/- made by the Assessing Officer on protective basis, which is not sustainable in the eyes of law, because in this case the AO himself stated in the assessment order that the Department is looking after the cases of beneficiaries and the amounts channelized through this group would be taxed in the hands of the beneficiaries, the amount of total credits of ₹ 3,17,67,951/- made in its bank account with Kotak Mahindra Bank, KG Marg, New Delhi, during the year is added to the income of the assessee on protective basis. In this case we find that AO has not made any substantive assessment. There may be substantive assessment without any protective assessment, but there cannot be any protective assessment without there being a substantive assessment. Keeping in view all we are of the considered view that Ld. CIT(A) has rightly deleted the addition - Decided against revenue
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