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2019 (1) TMI 756 - HC - Income TaxAddition u/s 68 - AO issued notice u/s 142(1) - Held that:- The burden is on the assessee to prove that the credits availed by him from 87 persons are genuine. It may be true that mere production of the PAN details, confirmation letters from some of those creditors by itself will not tantamount to discharging the burden of proof. But nevertheless, when these details are furnished, that too, after the Assessing Officer issued notice u/s 142(1) verification is required to be done. It is a common knowledge that those persons who had given confirmation letters would not readily volunteer and appear before the AO to depose. A departmental verification or atleast a sample verification should have been done to examine the genuinity of the stand taken by the assessee. In fact the Department themselves understood the matter in such a way that is why they had raised the ground before the Tribunal stating that the CIT-A atleast ought to have remanded the matter. A verification can be done by the AO on the materials placed before him. The learned counsel for the assessee submits that tax has also been deducted at source and documents are available which will prove the genuinity of the transaction. It is well open to the assessee to place all material before the AO. Appeal filed by the assessee is allowed, the impugned order is set aside and the matter is remanded to the Assessing Officer for fresh consideration. AO shall verify all the documents produced and the assessee shall also endeavour to produce atleast a few of the creditors before the Assessing Officer to show his bonafide and make out a case before the AO.
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