Assessee need not prove genuineness and credit worthiness of sub-creditor

In the assessment order dated 28th February 1997 the Assessing Officer (‘AO’) noted that the Assessee continued to derive its business income, as in the earlier years, from trading in gold and diamond ornaments. It was noted by the AO, inter alia that the balance sheet of the Assessee showed the receipt of unsecured loans of Rs. 38 lakhs and a sum of Rs. 1,01,007 on account of interest accrued on the above amount. The Assessee was asked to furnish the evidence regarding identity, creditability and genuineness of the source of its income. Pursuant thereto, the Assessee disclosed tha...