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2020 (1) TMI 447 - AT - Income TaxUnexplained income u/s.68 - Admission of additional evidence - HELD THAT:- The additional evidences were examined and found that they are basically copies of the affidavits, confirmations given by certain creditors and the bank statements of those creditors. In principle, they relate to the issue under consideration and they go to the root of the matter and shall definitely be of some use for adjudication of the issue judiciously. In our opinion, it is in the interest of administrational justice to admit the same. Accordingly, we direct the AO to consider the contents available on these papers and use them for adjudication of the issue, after granting a reasonable opportunity of being heard to the assessee. The AO is free to conduct requisite enquiries into the correctness of these papers, as per law. Repayment of the loans to the creditors - Repayment means, assessee paid the dues to the person, who is existing. That person received the funds and to that extent, the genuineness of the transaction assumes credibility. So long as there is no evidence with the AO to demonstrate such repayments were routed back to the payer, the transaction becomes genuine and therefore, there is no need for suspecting the same. The transaction becomes so genuine more so when the payments and repayments are done through the banking channels. AO is directed to examine whether the repayments are properly appropriated by the creditors, if not routed back into the accounts of assessee. Reasonable opportunity of being heard to the creditors is to be given in case such enquiries are undertaken. Thus, keeping all the issues open relating to the addition - Grounds remanded back to the file of AO. Appeal of assessee is treated as allowed for statistical purposes.
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