Addition u/s 68 for no effort by Dept. to verify identity & creditworthiness of creditors not justified

In view of above, following the judgment of Hon’ble Guwahati High Court in the case of Nemi Chand Kothari (supra) and the judgment of Madhya Pradesh high Court in the case of Metachem Industries (supra), we hold that the AO and the CIT(A) did not make any effort to verify the confirmations, identity and creditworthiness of the creditors in question and they also ignored the fact that the transaction of cash credits received and its repayment were made through bank and we also hold that the authorities below did not bring any incriminating materi

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