TMI Blog2011 (8) TMI 22X X X X Extracts X X X X X X X X Extracts X X X X ..... y 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 Ass ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... interest payable to the loan creditors. c) Being dissatisfied, the appellant preferred an appeal before the Commissioner of Income-tax (Appeals) but the said appeal was dismissed. d) Against the aforesaid order passed by the Commissioner of Income-tax (Appeals), the appellant preferred an appeal before the Tribunal below and by the order impugned in this appeal the Tribunal has dismissed the said appeal. e) Being dissatisfied, the appellant has come up with the present appeal. A Division Bench of this Court at the time of admission of the appeal formulated the following substantial questions of law for determination. 1. Whether the Tribunal was justified in law in upholding the order of assessment passed after taking into c ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to his client nor did the Assessing Officer ask for any explanation from the assessee on such report. Mr. Khaitan submits that apart from the aforesaid fact, all the authorities below did not consider the principles which were required to be followed in deciding whether the cash credits in question were genuine. Mr. Khaitan, therefore, prays for setting aside of the order of assessment and for deletion of the amount. Mr. Agarwal, the learned Advocate appearing on behalf of the Revenue, has, on the other hand, opposed the aforesaid contention of Mr. Khaitan and has contended that in this case, the initial onus cast upon the assessee to show that the transaction was a genuine one, was not discharged and as such, the authorities below righ ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... so confirming the details of loan transaction with the appellant. Pursuant to such information, the Assessing Officer, as it appears from assessment order, sent an Inspector to verify the returns of those two persons. The said Inspector allegedly informed the Assessing Officer that no return for the relevant Assessment Year was filed on behalf of K. K. Pant and that in the return submitted by Sri Mohata, the appellant was not shown as one of the creditors. The Assessing Officer on the basis of such information received from the inspector concluded that the transactions were not genuine and the appellant failed to discharge the initial burden to prove genuineness, creditworthiness and capability of the creditors. Being dissatisfied, the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tory, the Assessing Officer can disbelieve the alleged transaction of loan. But the law is equally settled that if the initial burden is discharged by the assessee by producing sufficient materials in support of the loan transaction, the onus shifts upon the Assessing Officer and after verification, he can call for further explanation from the assessee and in the process, the onus may again shift from the Assessing Officer to assessee. In the case before us, the appellant by producing the loan- confirmationcertificates 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 mater ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n to know what the text of the actual information was that was conveyed by the said Inspector to the Assessing Officer except those recorded in the assessment order. In our view, 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. We thus 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 undi ..... X X X X Extracts X X X X X X X X Extracts X X X X
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