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2015 (7) TMI 862 - AT - Income TaxAddition under section 68 - CIT(A) deleted the addition - Held that:- The assessee has produced copies of income-tax returns as well as PAN of the investors. Therefore, as far as the creditworthiness is concerned there is no dispute. Similarly the amounts have been received through account payee cheques. It is to be assumed that transactions are genuine unless proved otherwise by the AO. The solitary grievance of the AO is that he has tried to serve the notice upon the investors but failed to serve. In this connection it is pertinent to note that in AY 2007-08 effort was made by the AO after 18.12.2009 and before 22.12.2009, because he passed the assessment order on 31.12.2009. The list of the customers is available on pages 318 to 322 of the Paper Book. All the customers are from Surat but appears to be from different areas. The addresses given in the list is also the address reflected on the income-tax returns. Then why the ld. AO could not service notices upon these persons is specifically not discernible. According to the AO the process server has reported that addresses are in complete. In these situation we have two sets of evidences –one the alleged assertions of the AO on the basis of alleged report of the process server which has not been placed on record by the Revenue nor reproduced by the AO in the assessment order. He has not even made reference to any particular witness in whose presence process server had tried to locate the alleged investors. On the other hand, copies of the income-tax returns, bank statement, PAN coupled with the fact that the amounts have been returned through account payee cheques and ld. first appellate authority had accepted this explanation. If we weigh both these sets of evidences then the scale would tilt in favour of the ld. CIT(A) because the assertions of the AO is not supported with any concrete material on the record. The time gap of 2-3 days referred by the A.O. for service, gives a doubt to our mind also whether, practically the process server had actually made an attempt to effect the services on all the investors in different corners of the city in that short time. Therefore, on an overall analysis of the record we are satisfied that ld. first appellate authority has appreciated the facts and circumstances in right perspective and no interference is called for - Decided against revenue.
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