2012 (4) TMI 420

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....e appeal is with respect to the addition of Rs. 22,20,549/- made by the Assessing Officer, disclosed as loans by the assessee in his cash flow statement. The assessee would contend that having produced confirmation letters from the creditors, the assessee has discharged his burden and that on furnishing such primary material, it was for the assessing authority to ask for and obtain further materials to substantiate the same, if so required. 2. The assessee, a partner of a Roller Flour Mill, filed his return of income for the assessment year 2005-06, which was processed under Section 143(1)(a) of the Income Tax Act (for short "the Act"). On the case of the assessee being taken for scrutiny, notice was issued under Section 143(2) of the Ac....

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....hority, confirming the additions in a second appeal filed by the Revenue. 3. The question which arises for consideration before us is as to whether by mere production of confirmation letters of the creditors can the assessee be said to have discharged his burden to offer satisfactory explanation and whether the onus would shift to the Assessing Officer to discredit such confirmation letters and prove the negative. 4. There can be no dispute that the assessee having admitted to the loan receipts in the cash flow statement filed before the Assessing Officer, the burden to offer satisfactory explanation is squarely cast on the assessee under Section 68 of the Act. The true nature and scope of Section 68 of the Act as also the circumstanc....

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....letters. We are unable to agree with the same. The learned Senior Counsel for the assessee Sri. A.K. Jayasankar Nambiar would strenuously urge before us that the assessee has materials, like statement of accounts and deed of conveyance to prove the genuineness of the transaction as also the source of his creditors and prays for examination of the same by this Court or in the alternative, prays for a remand. We are not inclined to examine the additional documents said to be available with the assessee for more than one reason. The assessee had ample opportunity to produce the said documents before the Assessing Officer as also the two appellate forums, which constitute the fact finding authorities under the Act. The Tribunal on facts having ....