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2017 (2) TMI 267 - AT - Income TaxAddition u/s 68 - proof of genuineness of the transactions - Held that:- No doubt the initial onus placed upon the assessee can be said to have been discharged by providing confirmations, ITR’s, balance sheets etc of the said companies. However it shifts back to the assessee when the assessee has been required to produce the directors of these 8 closely held companies keeping in mind the fact that the assessee is a private limited company whose nature of activity necessarily would be known to only its close knit circle of friends, relatives and associates thus what were the facts which persuaded these 8 shareholders to make an investment in shares of the said company to the extent of ₹ 5 lakh each are necessary facts which are required to be taken into consideration and the burden which shifts back to the assessee in the facts of the present case is not be discharged. While so holding, it may not be out of place to note yet again that the assessee company is a private limited company, the shareholders are also claimed to be private limited companies and the Ld.AR has stated that the assessee may not be in a position to produce the directors of the 8 private limited companies. The wisdom of the said submission is left open to the assessee who is required to prove genuineness of the transactions. Accordingly, for the reason given hereinabove the impugned order is set aside and the issue is set aside back to the file of the CIT(A) with a direction to decide the same by way of a speaking order in accordance with law addressing the facts on record. - Decided in favour of revenue for statistical purposes
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