Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2011 (5) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2011 (5) TMI 1007 - ITAT DELHIUnexplained Cash Credits u/s 68 - Principle of Natural Justice - AO's decision regarding income from undisclosed sources was based on third party evidence whose cross examination was not done - CIT(A) quashed the assessment on the ground of principles of natural justice HELD THAT:- It is observed that undeniably, the witness, the complainant, was not allowed to be crossexamined by the assessee, though the assessee had requested specifically for such cross-examination being allowed to him. In fact, such request has been noted even in the assessment order. Thus, the addition having been based on third party evidence at the back of the assessee, the same was correctly quashed by the CIT(A). Coming to the merits, undisputedly, the addition was based only on some entries in the bank account of the assessee. The provisions of sec 68 are, therefore, not attracted where the assessee does not maintain books of account. It is correct that since no books of account are maintained in the ordinary course of the business of the assessee, in the absence of any corroborative evidence to support action u/s 68, no such addition is tenable.
|