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TMI Blog2012 (4) TMI 420X X X X Extracts X X X X X X X X Extracts X X X X ..... garding the identity, status or capacity of the creditors or even the dates on which the said loans were said to be made - against assessee. - IT APPEAL NO. 405 OF 2010 - - - Dated:- 11-1-2012 - C.N. RAMACHANDRAN NAIR AND K. VINOD CHANDRAN, JJ. A.K. Jayasankar Nambiar, E.K. Nandakumar, K. John Mathai, P. Benny Thomas, P. Gopinath and Smt. Preetha S. Nair for the Appellant. P.K.R. Menon and Jose Joseph for the Respondent. JUDGMENT K. Vinod Chandran, J . The assessee is in appeal before us from the order of the Tribunal reversing the order of the first appellate authority and confirming that of the Assessing Officer. The short question raised in the appeal is with respect to the addition of Rs. 22,20,549/- made by the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... v. P. Mohanakala [2007] 291 ITR 278/161 Taxman 169 (SC) found that the explanation offered by the assessee is not satisfactory and the source of the receipt of loans having been not proved, the same is liable to be treated as undisclosed income of the assessee. On first appeal by the assessee, the first appellate authority, based on the confirmation letters of the creditors, held that there was no requirement on the part of the assessee to prove the source of the creditors and further held that the Assessing Officer has not brought out any evidence to prove the genuineness of the source of the assessee. The Tribunal, however, reversed the order of the first appellate authority, confirming the additions in a second appeal filed by the Re ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n of material and other circumstances available on record, to arrive at a satisfaction or otherwise. 5. In the instant case, the assessee, on the details being sought by the Assessing Officer, produced confirmation letters from the so-called creditors and rested contend. The assessee would contend that those are primary materials on which the Assessing Officer was to arrive at a satisfaction on and that being found insufficient, the Assessing Officer ought to have called for more details. In other words, the assessee would contend that on production of confirmation letters, the assessee's burden stands discharged and it was for the Assessing Officer to discredit the confirmation letters. We are unable to agree with the same. The learned ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in the event of non-satisfaction. The assessing officer cannot be burdened with the onus of proving the negative nor can there be an endless process of substantiation of materials by production of other materials. The burden of the assessee is to offer satisfactory explanation and if the materials and documents produced by the assessee does not lead to a proper, reasonable or acceptable explanation as regards the receipts in the books, the Assessing Officer is perfectly entitled to record his non-satisfaction, provided he has applied his mind which is discernible from the impugned order. As noticed earlier, the assessee rested contented with the production of confirmation letters without any further material regarding the identity, status ..... X X X X Extracts X X X X X X X X Extracts X X X X
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