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2017 (2) TMI 541 - ITAT MUMBAIAddition on the basis of statements recorded by the Sales Tax Department (STD) from two of the suppliers of the assessee - Held that:- FAA called for a remand report, that in the report the AO did not comment upon the statements of the suppliers, that the assessee was not given any opportunity to cross examine the parties who had supplied the goods to it, that the AO had not rejected the books of accounts of the assessee, that he had accepted the sales made by it. The FAA has mentioned that the AO did not comment upon as to whether the suppliers had implicated the assessee specifically or the statements were general in nature. In case the statements were about providing accommodation entry in general, in our opinion, the issue should have been investigated further. The assessee had produced documentary evidences including the proof of payment through banking channel. We further find that the AO has not mentioned in his order as to what documents were produced before him-though he stated that same are being reject - ed. Without giving the details of the documents and reasons for rejecting the same is arbitrary use of the powers. The information received from the STD was a good starting point for making further investigation. But same had to be taken to the logical end the documents produced by the assessee had to be rebutted. - Decided against revenue
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