TMI Blog2011 (11) TMI 654X X X X Extracts X X X X X X X X Extracts X X X X ..... tor if he is not satisfied by the explanation given and it is not possible for the assessee to prove the sources of the creditors. It has also been recorded as a matter of fact that the amounts have been received by way of banking channel and, therefore, it was for the Assessing Officers of the said creditors to question the said creditors, who were income tax assesses and in the absence of any ev ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 9;ble ITAT was legally correct in dismissing the appeal of the department by holding that the assessee discharged the onus to prove the genuineness of the transaction and credit worthiness of the creditors regarding credits introduced by the creditors though it was proved beyond doubt that the amounts of commodity profits earned by the creditors and which were introduced by the creditors to the as ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ip firm engaged in the business of trading in iron steel and cycle parts and manufacturing cycle parts, which had taken unsecured loans from 18 persons totalling to ₹ 72,86,519/- which was noticed by the Assessing Officer on 31.3.2007. Accordingly, the details of the creditors were called for and examined by the Assessing Officer and confirmation regarding the income tax particulars and mo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... er. We feel that the submission is absolutely untenable as the assessee cannot be asked to show credit worthiness of his creditors and the Assessing Officer of that creditor can add the said amount to the income of that creditor if he is not satisfied by the explanation given and it is not possible for the assessee to prove the sources of the creditors. It has also been recorded as a matter of ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
