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2022 (11) TMI 187 - AT - Income TaxUndisclosed income - amounts received by the assessee through third parties by way of circular transactions - CIT- A deleted addition - HELD THAT:- Mainly the assessee has to justify the amount credited in the books of accounts of the assessee itself with the identity, creditworthiness and genuineness of the world transaction. Here the assessee has diverted the attention of CIT – A producing the directors of 2 related parties. In fact the AO/CIT – A should have examined the parties were given credit in the books of the assessee/credited in the bank account of the assessee. This exercise is missing. As relevant that there is a an embezzlement in the transactions of related parties. Assessee has nothing to do with that, it has the prime responsibility of proving the amount credited in the bank account of the assessee. Therefore, CIT – A has deleted the addition on the basis of the relevant material. There is no independent evidence available with the learned CIT – A to delete the addition. He has deleted the addition merely on the basis of statement of the directors of 2 related parties, statement of the partner of the assessee who is also director in one of the company which is involved in the world transaction as per the statement of the assessee. Thus, lack of independent evidence makes the order of the learned CIT – A not sustainable. CIT – A has also wrongly held that when the amount is deposited in the bank account with HDFC bank of the assessee the deeming provisions of Section 68 is not applicable to the said receipt as it is credited in the bank account of the appellant. CIT – A has ignored the fact that the amount which is credited in the bank account of the assessee is also credited in the books of accounts of the assessee and therefore the provisions of Section 68 are definitely attracted. We set aside whole issue back to the file of the ld. CIT (A) with a direction to pass decide whether the additional evidences submitted by the assessee were admitted or not giving reasons for his order. Thereafter he may decide the issue on merits of the case considering our above finding. Appeal of AO is allowed for statistical purposes.
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