Allowing the appeal the Court held that ,from the record of the assessing authority, it was clear that there was no examination of these affidavits or cross-examination by the assessing authority of these persons. In the absence of any cross-examination or rebuttal or controverting of these affidavits, the assessing authority could not have concluded that the assessee had failed to adduce the evidence to prove the identity of the creditor, genuineness of the transaction and creditworthiness of the creditor. The appellate authorities enjoying co-extensive powers, also could have undertaken the exercise, but failed to do so. Matter remanded to the Assessing Officer. ( AY.2005-06)