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2016 (6) TMI 1376 - AT - Income TaxAddition u/s 68 - unexplained cash credit - HELD THAT:- Merely because the investment of ₹ 2.94 crore has come from a KYC compliant NRO account is not enough to prove either the genuineness of the transaction or creditworthiness of Shri Vakil. It is not fair on the part of the first appellate authority to put the entire onus on the Assessing Officer to prove that the transaction is not genuine or Shri Vakil has no creditworthiness. When the AO in his remand report has clearly stated that the assessee neither submitted the documentary evidence called for nor produced Shri Vakil for examination to ascertain his creditworthiness as well as genuineness of the transaction, the AO could not have accepted the transaction as genuine in the absence of proper evidence. We are inclined to set aside the impugned order of the Commissioner (Appeals) and restore the matter back to the file of the AO to examine the issue relating to genuineness of the investment made of ₹ 2.94 crore by Shri Vakil, in share application money of the assessee company and decide the issue after providing adequate opportunity of hearing to the assessee. The assessee is at liberty to furnish necessary evidences either documentary or by producing Shri Vakil, to prove the genuineness of the investment made by him and also his creditworthiness.- Ground raised by the Department is partly allowed for statistical purposes.
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