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2022 (3) TMI 718 - AT - Income TaxAddition u/s 68 - unexplained investment - genuineness of transaction could not be established/proved by the assessee - CIT-A deleted the addition - HELD THAT:- Merely on the basis of opening balances without making a substantive inquiry, the sundry creditors could not have been rejected. The order of assessment indicates that based upon the remarks on the envelopes issued to the creditors of the assessee, the AO has presumed them to be bogus liability treating them income of the assessee from undisclosed sources. The lack of attempt of inquiry by Ld. AO is exhibited by observations in rejecting the books of accounts of the assessee without actually calling for them and which has been rightly made foundation by the Ld. First Appellate Authority, to hold that rejection of books of accounts was not in accordance with the provisions of the Act. In the judgment relied by the counsel for assessee of M/s. Pranidhi Holdings Pvt. Ltd. [2018 (4) TMI 403 - DELHI HIGH COURT as held that when assessee has brought on record all the documents necessary to establish the creditworthiness of the creditors and the genuineness of the transaction and the AO has not preferred to file any comment then there is no scope of interference into the findings returned by the Ld. CIT(A). In the appeal in hand also, as in spite of opportunity by the Ld. First Appellate Authority, calling for comments on merits of the additional evidence, the Ld. AO failed to respond, now before this Tribunal, the revenue cannot succeed. Addition for failure of assessee to reconcile the amounts in record to the transactions - HELD THAT:- This issue with regard to validity of addition is restored to Ld. FAA for deciding the issue afresh after granting adequate opportunity of hearing to both the parties and by passing a speaking order on the issue.
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