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2020 (1) TMI 916 - AT - Income TaxUnexplained advance - unexplained cash deposited in bank - unexplained investment in shares - CIT-A deleted the addition - burden of proof - case of the assessee was reopened by the AO on the basis of information received from the Investigation Wing of the Income-tax Department - HELD THAT:- CIT(A) has relied on the statement of persons before the Investigation Wing but the assessee has not produced any evidences before the ld. CIT(A) or before the Assessing Officer to corroborate those statements that the assessee company was engaged in providing only accommodation entries. The assessee-company has not provided any affidavits from the beneficiary companies to support its claim of being engaged in providing accommodation entries. The primary onus under section 68 of the Act is on the assessee to discharge and explain the nature and source of the entries in books of account. Estimating the income at the rate of 1% presuming that the assessee was engaged in providing only accommodation entries against commission by the Ld. CIT(A) is not justified. We feel it appropriate to restore this issue to the ld. CIT(A) for deciding afresh after verification of documentary evidence, if any, which shall be produced by the assessee to substantiate its claim that it has rotated money of the beneficiaries and provided accommodation entries to the beneficiaries against certain commission only. The assessee should produce those beneficiaries before the Assessing Officer in support of its claim of having engaged only in providing accommodation entries to the beneficiaries. It is needless to mention that both the parties, i.e., the assessee and Assessing Officer shall be provided adequate opportunity of being heard. - Decided in favour of revenue for statistical purposes.
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