Allowing the appeal of the assessee the Tribunal held that , If the AO has remained silent with folded hands and has not made any independent inquiry from the concerned AO of share holder company and has not controverted the evidence produced by the assessee, that itself is sufficient to knock off the addition made. The fact that there is no personal appearance from director of said cash creditor (share holder) does not mean that an adverse inference u/s 68 can be drawn by the AO without the AO discharging the secondary burden lying upon him . ( ITA No. 3133/Del/2018, dt. 25.06.2018)(AY. 2009-10)
Moti Adhesives Pvt. Ltd. v. ITO (Delhi)(Trib), www.itatonline.org
S. 68: Cash credits- Bogus share capital- If the AO has remained silent with folded hands and has not made any independent inquiry from the concerned AO of share holder company and has not controverted the evidence produced by the assessee, that itself is sufficient to knock off the addition made. The fact that there is no personal appearance from director of said cash creditor (share holder) does not mean that an adverse inference u/s 68 can be drawn by the AO without the AO discharging the secondary burden lying upon him .