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2018 (12) TMI 1410 - ITAT DELHIUnexplained cash credit u/s 68 - unexplained share application money received during the assessment year - no occasion to cross-examination of the entry providers by assessee - Held that:- The glaring feature of the assessment proceedings conducted by the learned assessing officer is that that he has grossly relied upon the investigation, carried out by the investigation wing Kolkata on the basis of the statement of Shri Rajesh Kumar Agarwal and Shri Rakesh Bansal recorded by the Deputy Director of income tax (investigation), New Delhi and the copies of such statements were not provided to the assessee. When the copy itself was not provided of the statement recorded of the above persons, based on which the allegation of the revenue that the share applicants are accommodation entry providers, the assessee did not have any opportunity to rebut those averments made by them. The assessee did not have any occasion to ask for the cross-examination of those entry providers, unless the statement was provided to the assessee. As per principle of natural justice, it was obligatory on the part of AO to have provided all the materials, which were used by him against the assessee. In case, the assessing officer was relying on the statement of different persons then the assessee will have to be given an opportunity to cross-examine them and rebut averments made by them. In such cases, otherwise additions cannot be sustained. No offer was made by the learned departmental representative that the copies of the statement of those persons or their cross-examination would be afforded by the revenue now; we do not have any option but to delete the addition made by the learned assessing officer on this count itself. No option but to reverse the finding of the lower authorities and direct the learned assessing officer to delete the addition made under section 68 - decided in favour of assessee.
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