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2013 (11) TMI 1281 - AT - Income TaxIncome from undisclosed sources - Income from rent – Agricultural Income - Addition u/s 68 Applicability of sec. 68 – section 68 would has no application where the assessee was not maintaining any books of account – Following Ms. Mayawati vs. DCIT, [2007 (11) TMI 328 - ITAT DELHI-A] - The relationship was not necessary for making the gift – the contention that the transaction entered into was merely an accommodation entry in the absence of any evidence being brought on record cannot be accepted. The onus is on the assessee to prove the identity, creditworthiness and the capacity of the donor - the donor had prima facie capacity to make a gift to the Donnee - Even it was also held that at the relevant time Indian currency could not be deposited in an NRE account - the AO was not correct in law in making the addition in the case of the assessee again in set aside proceedings - The AO was duty bound to provide the opportunity to cross examination - the proposition that if the request for permission to cross examine persons on the basis of whose statement the additions are made if not allowed the principles of natural justice stand violated and the order of the assessment is not valid - This is an admitted fact that in this case the AO could not produce Mohd. Shamim for the cross examination of the assessee - The basis of the addition is the statement of Mohd. Shamim whose statement has been recorded at the back of the assessee - Once the AO could not produce Mohd. Shamim for cross examination in view of the decision of this Tribunal dated 3rd July, 2006 no doubt the AO was bound to re-determine this issue on the basis of the other relevant material available on record – Additions made by the AO was rejected – Appeal Partly Allowed.
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