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2016 (5) TMI 342 - AT - Income TaxAddition u/s. 69 - undisclosed investment - Held that:- The investment has been made under the arrangement of an MoU and the other persons have a beneficial interest in the property. In this regard, we find that the assessee has made investment of ₹ 6,50,000/- only in the property and the other two persons namely; Shri Arvindbhai Patel and Shri Vinodbhai Solanki has made the investment of ₹ 65,00,000/- and ₹ 58,94,325/- respectively. The investment has been made under the arrangement of an MoU and same was accepted by the other two persons. It is not in dispute that the pay-orders have been purchased from their bank accounts and have been given to the revenue authorities. Therefore, the decision of the Assessing Officer holding that the investment belonged to the assessee was not justified and addition u/s. 69 cannot be made in the hands of the assessee. Accordingly, the CIT(A) has rightly deleted the addition in question. The CIT(A) has also rightly observed that the source of investment by the other two persons, who have owned the amount of investment in the land, was not clear. He also pointed out that since the other two parties have owned the investment, the Assessing Officer should have to investigate the source of investment in their respective hands by initiating appropriate proceedings and in case they were not assessed with the Assessing Officer, the concerned Assessing Officer should have to pass on the information to the jurisdictional Assessing Officer for taking the necessary action. Having observed so, the CIT(A) was justified in deleting the addition - Decided in favour of assessee Addition u/s 68 - loan received through banking channels - Held that:- It is not in dispute that these parties are assessed to income-tax, having PAN and also they have confirmed the fact of granting loan to the assessee. Moreover, it is also pertinent to note that the Assessing Officer has made this addition without inviting objections from the assessee and without giving reasonable opportunity of being heard. There is nothing on record to suggest that the Assessing Officer has issued any summons to the respective parties. In this case, we find that the depositors in this case are established their identity and genuineness of the transaction as the transactions were routed through the banking channel; more so, the assessee has submitted the confirmation from the two depositors, indicating the PAN and address of the concerned. With regard to creditworthiness, the primary onus to prove the unsecured loan was established by the assessee by providing the name, address and PAN of the depositors. Thus, the onus was shifted upon the Assessing Officer to prove that the contention of the assessee was not correct by making necessary enquiries under the powers vested u/s 133(6) and 131 of the Income-tax Act. There is no material evidence on record to suggest that the Assessing Officer has discharged his onus, i.e, the burden of proof; therefore, the addition in question is not justified and the same is directed to be deleted.- Decided in favour of assessee
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