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2018 (4) TMI 1419 - AT - Income TaxUnexplained investment - Held that:- It is also accepted fact that when the assessee has obtained such a huge investments in the company and if the investors companies directors are not examined, it is apparent what kind of investment it is. We fully agree with the arguments of the DR. On production of all details of the investor companies, directors of the investor companies and thereafter examining them, AO will decide the issue afresh. AO is directed to minutely examine these investments in the assessee company in the light of our observations made earlier in this order. In case if after giving the notice to the assessee company, if assessee does not furnish the requisite details and fail to produce the directors of the investor companies along with the books of those companies, AO may take view in accordance with the law. In the result we do not agree with the order of the ld CIT (A) - In the result ground No. 1 – 4 of the appeal of the revenue is allowed accordingly. Addition u/s 68 - Held that:- We direct the assessee to produce relevant details with respect to the identity, creditworthiness of the investor companies as well as the genuineness of the transaction. In the peculiar circumstances and the facts, and where the post-search enquiries also prove otherwise, the higher onus is cast upon the assessee and therefore The assessee is directed to discharge its onus by producing the relevant details as well as the books of accounts of the investor companies along with the directors of those companies before the assessing officer for the examination. They need to explain that how despite making such a huge investments it is not shown in the balance sheet as investments. AO may examine the directors of the investor company along with the books of account and respective bank statements and balance sheets of the investor company and then decide the issue in accordance with the law
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