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2017 (5) TMI 573 - ITAT AHMEDABADPenalty under section 271(1)(c) - addition u/s 68 - Held that:- Assessing Officer went into great lengths to verify the genuineness of these transactions and issued summons to the share applicants and his reasons that transaction was not genuine based on statement of the party , and not the product of conclusions based on suspicion. We observe that the facts of the case indicate the onus on the assessee to discharge complete liability to establish that the genuineness, credit-worthiness of the credit entry found in the books of accounts. In the present case, when the Dugar Polymers Ltd itself denied of making an investment in the shares of assessee Company and enclosed the audited balance sheet for financial years 2009 – 2010 for ready reference then the assessee should have responded positively to proceed next step for cross-verification and cross-examination to prove its point. In view of the above facts and findings we considered that opportunities were provided by the assessing officer to the assessee to substantiate its claim and to disprove the contention of the non-confirming party but the assessee failed to show any initiative as it had not shown any willingness for crossverification and cross-examination of the said party. In view of the above mentioned facts and reasons, we uphold the order of the Ld. CIT(A) vide which penalty imposed u/s. 271(1)(c) of the act was sustained and justified. - Decided against assessee.
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