2014 (12) TMI 394

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....1986-1987, petitioner filed return of income declaring the total income of Rs. 24,970/-, when assessment was completed under section 143(1) of the Act on 27.7.1987. During the assessment proceedings, 1990-1991, the Assessing Officer noticed that there was outstanding loan of Rs. 18,50,000/- from one M/s Vardhman Trading Company, after the payment of Rs. 3,00,000/- outstanding balance on 31.3.1990 was shown as Rs. 5,55,000/- and M/s Vardhman Trading Company did not show the petitioner as its debtors in its balance sheet, the Assessing Officer initiated proceedings under section 148 of the Act against the petitioner. The Assessing Authority did not accept the identity or capacity of the creditor and the genuineness of the transaction, accordi....

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....aph 3.5 of the order, which is as follows: " 3.5 We have also considered, various cases which have been relied upon by the ld. Counsel. It emerges that the assessee is obliged to file evidence regarding the identity and creditworthiness of the lender and genuineness of the transaction. The evidence in these matters should be prima facie believable. If such an evidence is filed, the onus shifts to the revenue. However, in this case even the identity of the creditor has not been proved on a prima facie basis by filing partnership deed or any other credible evidence. The existence of 17 partners stands falsified in view of the inquiries made by the AO, which was communicated to the assessee. The creditor was not assessed in the relevant ass....