2011 (9) TMI 175 - HC - Income Tax

Genuineness of creditors - Assessment / examination of creditors by the AO of the assessee - Jurisdiction of AO - Held that:- the Assessing officer of the assessee cannot take the burden of assessing the profit and loss account of the creditor when admittedly the creditor himself is an income tax assessee. After getting the PAN number and getting the information that the creditor is assessed under the Act, the Assessing officer should enquire from the Assessing Officer of the creditor as to the genuineness of the transaction and whether such transaction has been accepted by the Assessing officer of the creditor but instead of adopting such course, the Assessing officer himself could not enter into the return of the creditor and brand the same as unworthy of credence. - Decided in favor of assessee.