2018 (8) TMI 2127

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....is an appeal preferred by the revenue against the order of the Commissioner of Income Tax (Appeals), Siliguri, dated 11.04.2016 for Assessment Year 2012-13. 2. The only grievance of the revenue is against the action of the Ld. CIT(A) in deleting an addition of Rs.50 lakhs. 3. Briefly stated facts of the case are that the assessee is the proprietor of M/s. Ganapati Mini Rice Mills and had taken u....

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....ild Ware Infrasteel Pvt. Ltd. respectively. We note that the assessee during the assessment proceedings has filed the following documents to prove the identity, creditworthiness and genuineness of the transactions: i) Confirmation letter duly signed by the Creditors, ii) Audit Report of the Loan Creditors for FY 2011-12, (AY 2012-13) iii) Acknowledgment of I. T. Return filed for FY 2011-12 (....

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....012 24/05/2013 039387 039388 039389 013057 TOTAL 15,00,000/- 15,00,000/- 15,00,000/- 1,74,859/- 46,74,859/- GANESH TRADELINK PRIVATE LIMITED 22/06/2012 24/05/2013 039390 013058 TOTAL 5,00,000/- 19,216/- 5,19,216/ 7. We note that the AO after examination of creditors' financial status came to the conclusion that the lenders were not creditworthy. This action of AO is flawed as ....

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....mself is an IT Assessee. After getting the PAN and getting the Information that the creditor is assessed under the Act, the AO should enquire from the AO of the creditor as to the genuineness of the transaction and whether such transaction has been accepted by the AO of the creditor, but instead of adopting such course, the AO himself could not enter into the return of the creditor and brand the s....