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2020 (7) TMI 619 - AT - Income TaxUnexplained cash credits u/s 68 - unsecured loans - parties have not responded to notice issued u/s 133(6) - HELD THAT:- Assessee has discharged its initial burden cast upon, it under the provisions of 68 - Once initial burden cast upon on the assessee has been discharged by filing necessary evidences, then the burden shifts to the revenue to prove that the credits found in the books of accounts of the assessee is income earned from undisclosed source of income. AO has primarily relied upon the fact that the parties have not responded to notice issued u/s 133(6) to draw a conclusion against the assessee that the purported loans taken from those parties are non genuine in nature, ignoring legal position that non appearance of the parties to the proceedings before the Ld. AO cannot be a sole ground for taking adverse inference against the assessee, more particularly, when the assessee has filed necessary evidences to prove loans taken from above parties. This legal position is supported in the case of CIT vs Lovely Exports Pvt.Ltd. [2008 (1) TMI 575 - SC ORDER ] held that if, the share application money is received by the assessee company from alleged bogus shareholders, the names are given to the Ld. AO, then the department is free to proceed to reopen their individual assessment in accordance with law, but the sum found credited in its books cannot be regarded as undisclosed income of the assessee. - Decided in favour of assessee.
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