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TMI Blog2016 (3) TMI 1224X X X X Extracts X X X X X X X X Extracts X X X X ..... creditors from M/s Satyam Commodities and M/s B.K. Commodities from whom the assessee was also taking commodity entries. Assessing Officer shall give reasonable sufficient opportunity of being heard to the assessee. I make it clear that in case the assessee fails to produce any of the creditors before the Assessing Officer, the Assessing Officer is at liberty to draw any adverse inference against the assessee and shall pass assessment order in accordance with law, strictly on merits of the case, as have been discussed and considered in the assessment order. Appeal of the assessee is allowed for statistical purposes. - ITA No. 80/Chd/2016 - - - Dated:- 9-3-2016 - SHRI BHAVNESH SAINI, JUDICIAL MEMBER For The Appellant : Shri Aman ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cured loans were allegedly taken by the assessee. The assessee in response to summons furnished the notarized affidavits, copies of ITRs and copy of the accounts together with bank statements of the creditors. The Assessing Officer noted that these papers are nothing but a device to defraud the Revenue. On perusal of the bills of the commodity profits, it was seen that the assessee had received commodity profits from M/s Satyam Commodities and M/s B.K. Commodities. Further the Assessing Officer issued letters to M/s Satyam Commodities and M/s B.K. Commodities respectively to produce their books of account and to attend personally to find out the genuineness of the transactions. But both the broker firms failed to attend and no copies of acc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... this ground of appeal of the assessee. 6. I have heard the learned representatives of both the parties and perused the material on record. It is admitted fact that when the Assessing Officer wanted to verify the creditworthiness of the creditors and genuineness of the transactions, the assessee was directed to produce all the creditors for verification and examination but the assessee failed to produce any of the creditors before the Assessing Officer. It is also admitted fact that all the creditors are related to the assessee and one of the creditors is even HUF of the assessee. No reason has been explained as to why these persons were not produced before the Assessing Officer for verification and examination of the transactions in the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nder the nomenclature of commodity profits are taken by the creditors as above and then immediately after crediting the proceeds of such entries in the bank accounts of these persons/creditors, amounts were immediately transferred to the assessee in the form of unsecured loans. The Assessing Officer also noted from the bank statements that there are not much transactions in the bank other than adjustment entries. The details of transactions of these persons are noted in the assessment order to show that after receipt of commodity profits, the equivalent or similar amounts have been transferred to the assessee in the name of loans. The Assessing Officer also noted that these creditors have also taken commodity profits from M/s Satyam Commodi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rnment in the matter. The assessee is directed to prove the creditworthiness of the creditors and genuineness of the transactions and also directed to explain as to in what circumstances the commodity profits have been received by the creditors from M/s Satyam Commodities and M/s B.K. Commodities from whom the assessee was also taking commodity entries. The Assessing Officer shall give reasonable sufficient opportunity of being heard to the assessee. I make it clear that in case the assessee fails to produce any of the creditors before the Assessing Officer, the Assessing Officer is at liberty to draw any adverse inference against the assessee and shall pass assessment order in accordance with law, strictly on merits of the case, as have be ..... X X X X Extracts X X X X X X X X Extracts X X X X
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