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2017 (5) TMI 470 - AT - Income TaxAddition u/s 68 - unexplained cash credit - credit-worthiness of the DE, genuineness of the transaction - Held that:- CIT(A) has discussed this issue in little detail, but devoted much energy in reproduction of CIT(A)s order passed in the case of Shri Dipin G. Patel. The ld.CIT(A) also reproduced the finding of the AO, submissions made by the assessee. While making an analysis of the statement given by Shri Dipin G. Patel, the ld.CIT(A) just reiterated replies given by him. But he has not analysed inference required to be drawn from those replies. Basically, the ld.CIT(A) was of the opinion that it is the onus upon the assessee to prove source of loan and its nature. Once the assessee failed to file confirmation from creditor, then it will be construed that she failed to discharge onus. As observed earlier, in the normal circumstances, the ld.CIT(A)s action could be appreciated. But, it is to be seen in the context that when a creditor turn hostile, then whether an assessee should be given an opportunity to prove his case with the help of circumstantial evidence or not. The role of the AO is not only of prosecutor, rather he is an adjudicator also. It is for the Revenue to provide a platform to the assessee where with the help of statutory powers of the AO, she could explain her position for not visiting her with tax liability. Looking into these facts and circumstances, we are of the view that impugned orders deserves to be set aside because the assessee was not granted sufficient opportunity at the level of the AO. These appeals are remitted to the file of the AO for re-adjudication. The ld.AO shall examine the ledger account of the assessee exhibiting details of loans received by the assessee through account payee cheque, and thereafter he would direct the bank for providing bank statement of the creditor during those periods. He would supply all incriminating materials to the assessee for giving an explanation. The assessee will be at liberty to submit any explanation or details in support of her defence. The observations made by us will not impair or injure the case of the AO and will not cause any prejudice to the defence/explanation of the assessee. All appeals of the assessee are allowed for statistical purpose.
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