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TMI Blog2019 (1) TMI 756X X X X Extracts X X X X X X X X Extracts X X X X ..... A departmental verification or atleast a sample verification should have been done to examine the genuinity of the stand taken by the assessee. In fact the Department themselves understood the matter in such a way that is why they had raised the ground before the Tribunal stating that the CIT-A atleast ought to have remanded the matter. A verification can be done by the AO on the materials placed before him. The learned counsel for the assessee submits that tax has also been deducted at source and documents are available which will prove the genuinity of the transaction. It is well open to the assessee to place all material before the AO. Appeal filed by the assessee is allowed, the impugned order is set aside and the matter is reman ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... oans disagreeing with the findings of the Commissioner of Income Tax (Appeals)? iii.Whether on the facts and circumstances of the case the Appellate Tribunal is justified in sustaining the addition under Section 68 and the consequential disallowance of interest on the ground that the genuineness of the credits is not proved when the appellant Company had produced confirmation letters from the creditors containing their names, addresses along with their PAN numbers before the assessing officer? and iv.Whether on the facts and in the circumstances of the case the views expressed by the Appellate Tribunal (in para 10 at page 9 of its order) regarding the assessing officer's legal duty to issue summons under Section 131 for verificati ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sing Officer added back the interest of ₹ 11,58,000/- paid under such loan as ingenuine expenses. 5.On appeal before the Commissioner of Income Tax (Appeals) (CITA), the addition and the adding back of interest were deleted holding that the assessee had filed confirmation letters and given identity particulars and PAN of the creditors and had discharged the initial onus in its part and if the Assessing Officer is not satisfied about the genuineness of the transaction which according to the assessee were cheque payments, he is bound to call the parties and prove the credits to be not genuine. The Department filed an appeal before the Tribunal and in the grounds of appeal, one of the ground is that the CITA atleast should have remand ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . However, the Tribunal while considering the appeal thought fit to restore the order passed by the Assessing Officer and set aside the order passed by the CITA. The facts clearly show that the details furnished by the assessee, namely, the names of the creditors, their PAN details, payments effected through Cheque and confirmation letters were never verified at any stage of the proceedings. The Assessing Officer did not do so, probably for want of time and neither the Tribunal undertook such an exercise. Under normal circumstances, the Tribunal atleast would have called for a remand report. Even such procedure was not resorted to. 7.The Hon'ble Supreme Court while considering the aspect as on whom the burden of proof lies in the cas ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... at mere production of the PAN details, confirmation letters from some of those creditors by itself will not tantamount to discharging the burden of proof. But nevertheless, when these details are furnished, that too, after the Assessing Officer issued notice under Section 142(1) of the Act verification is required to be done. It is a common knowledge that those persons who had given confirmation letters would not readily volunteer and appear before the Assessing Officer to depose. Therefore, a departmental verification or atleast a sample verification should have been done to examine the genuinity of the stand taken by the assessee. In fact the Department themselves understood the matter in such a way that is why they had raised the ground ..... X X X X Extracts X X X X X X X X Extracts X X X X
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