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2017 (7) TMI 209 - AT - Income TaxPenalty u/s 271(1)(c) - assessee has received the cash loans - proof of identity, genuineness and creditworthiness of donors - Held that:- The assessee having once filed the confirmations in which no defect has been pointed out, the onus on the assessee stands discharged. In response to notice u/s 131(1) of the Act the said parties filed the affidavit, bank account, acknowledgment of filing of income tax returns directly to the Assessing Officer. The finding of the Assessing Officer that the said entities are fake is on the basis of no material on record and purely on the basis of surmises and conjectures. In fact on the other hand the assessee has proved the identity, genuineness and creditworthiness by filing various documents by the customers as mentioned here in above. Even if the creditors do not appear in response to the notice u/s 131, it is not the duty to enforce the said parties by the assessee and make them present before the Assessing Officer. Assessing Officer will have to arrive at a prima facie satisfaction during the course of proceedings with regard to the assessee having concealed particulars of income or furnished inaccurate particulars, before he initiates penalty proceedings. See case of Madhushree Gupta [ 2009 (7) TMI 38 - DELHI HIGH COURT ]. Thus the penalty so levied u/s 271(1)(c) of the Act is directed to be deleted. - Decided in favour of assessee.
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