2011 (8) TMI 22 - CALCUTTA HIGH COURT

Disallowance - Unexplained cash credit - Genuineness of loan - Interest payable to the loan creditors - Summons u/s 131 - Assessment - Appellant by producing the loan- confirmation certificates signed by the creditors, disclosing their permanent account numbers and address and further indicating that the loan was taken by account payee cheques, no doubt, prima facie, discharged the initial burden and those materials disclosed by the assessee prompted the Assessing Officer to enquire through the Inspector to verify the statements. equity and justice demand that the full text of the information given by the Inspector to the Assessing Officer which is the basis of the conclusion of the assessment should be made known to the assessee before the same is used against him so that the genuineness of the said information can be rebutted by the appellant-assessee or at least, the assessee can get an opportunity to explain the said information - Find that in the fact of the present case the order of assessment was made without giving adequate opportunity to the appellant to explain the undisclosed information received by the Assessing Officer from his Inspector - Therefore, set aside the order of assessment and remand the matter to the Assessing Officer for communicating the report of the Inspector to the appellant with further liberty to the Assessing Officer to enquire from the assessee any other information he desires.