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2023 (7) TMI 1202 - ITAT DELHIAddition u/s 68 - accommodation entry taken - initial Burden to prove - HELD THAT:- The initial burden is on the assessee. We find that to discharge the initial burden the assessee has submitted copies of ITR, bank statements, confirmations and affidavits acknowledging receipt of share certificates from the 10 investors companies. We find that the AO has failed to probe / conduct scrutiny of the documents so furnished and could not point out any fault in the documentary evidences so furnished. No material was brought on record by the AO to show that the affidavits filed by the directors of the investors companies were not genuine. No enquiries were conducted about the contents of the affidavits even during the remand proceedings the AO did not make any attempt to discredit the affidavit. The result is that the contents of the affidavits have not been disputed. Applicants were present at the given addresses against whom action could have been taken. In our considered opinion there is no material whatsoever on record for doubting the veracity of the statements made in the affidavits and if the deponents have also not been subjected to cross-examination for bringing out the validity of their statements then authorities would not be justified in doubting the correctness of the statement made by the deponents in the affidavits. Entire addition is based upon the statement of alleged entry operator Himsanshu Verma but he was never produced for cross-examination. The onus of ensuring his presence was on the AO but even the AO showed his inability to produce Himsanshu Verma for cross-examination. Thus assessee has successfully discharged the onus cast upon it by the provisions of section 68 - Decided in favour of assessee. Estimation of profit - deemed profit computed @ 8% of gross revenue from finishing work - HELD THAT:- As without rejecting the books of account the AO has grossly erred in estimating the profit which is against the ratio laid down in the case of National Industrial Corporation Limited [2002 (8) TMI 93 - DELHI HIGH COURT]. Since the addition is solely based on estimation without rejecting the books of accounts, we do not find any merit in the impugned addition the AO is directed to delete the same. Ground No.3 is allowed.
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