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2017 (11) TMI 1764 - AT - Income TaxAddition on account of share premium/share application money/unexplained cash credit u/s 68 - non providing opportunity for cross examination - Held that:- It is cardinal principle of natural justice, that before conclusions are drawn against a person based on statement of a third party, he must be allowed an opportunity for cross examination. This has not been provided. There is a limit to the capacity or responsibility expected of an assessee to prove facts. AO has not inquired into or reported on assessment in the case of the investor companies. There is no specific evidence cited by the AO in respect of the investor companies and the appellant which would shift the burden back on the appellant u/s 68. The assessing officer has stated that the appellant has not disproved the findings of the department. Now the question is what are the appellant specific findings that has to be disproved is not spelt out. In this fact matrix, and the judicial decisions covering the scope of section 68, the addition made in respect of share capital and advances u/s 68 in the case of the appellant is deleted. - decided in favour of assessee.
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