Mere payment by account payee cheque & deduction of TDS does not mean that transaction is genuine: ITAT

Income Tax Appellate Tribunal (ITAT) in the matter of Bhagwab Mahavir Education Foundation vs DCIT retreated that it is important to mention that in various case laws it has been held that “mere payment by account payee cheque is not sacrosanct nor can it make a non-genuine transaction genuine “[Precision Finance Pvt. Ltd. vs. CIT – 208 ITR 465 (Cal).]“. The burden of proof as to any particular fact lies on that person who wishes the court to believe in its existence. Moreover, the fact that TDS has been deducted, does not mean that transaction is genuine,

ITAT observed from the order of ld. CIT(A) that assessee-trust has failed to furnish certain evidences and documents before the lower authorities,

ITAT noted that assessee did not submit copy of the bank account in respect of certain parties, as noted by ld CIT(A) above, therefore loan transactions stood unverified. The assessee had filed the relevant page of its bank account which reflected the deposit of cheque of Rs.20,00,000/- on 31.03.2010 and prior to this date, there was cash withdrawal of Rs.24,50,000/- on 30.03.2010. No details in the form of copy of ITR-V filed. Since the bank book has not been furnished during the course of appellate proceedings, the veracity of this cash fund so withdrawn could not be explained.

ITAT was of the view that one more opportunity should be given to the assessee-trust to plead his case and furnish these documents and details before the ld. CIT(A). Therefore, it was deemed and proper to set aside the order of the CIT(A) and remit the matter back to the file of the ld. CIT(A) to adjudicate the issue afresh on merits.

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