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2018 (8) TMI 1766 - AT - Income TaxAddition u/s. 68 - AO took the view that the assessee has introduced its unaccounted cash through the bogus loans - disallowance of interest expenditure and addition of commission payment - non-furnishing of documents relied upon by the AO and non-providing of opportunity to cross examine - Held that:- The assessing officer did not issue summons and instead relied upon the inferences drawn by the search officials. Hence, in our view, the decision rendered by Hon’ble Supreme Court in the case of Orissa Corporation (P) Ltd [1986 (3) TMI 3 - SUPREME COURT] will also come to the support of the assessee. Operative portion of the order passed by CIT(A) says that the first appellate authority has placed reliance on various other case laws also. In effect, CIT(A) has examined the documents furnished by the assessee and has held that the assessee has discharged the initial burden of proof placed upon it u/s 68 - He has also held that the non-furnishing of documents relied upon by the AO and non-providing of opportunity to cross examine the Shri Bhanwarlal Jain and others would make the addition to fail. Even in respect of documents relied upon by the AO, the Ld CIT(A) has found the same to be inadequate to warrant the additions made u/s 68 of the Act. Hence, we are of the view that the Ld CIT(A) has passed a reasoned order by considering the facts of the case, applicable case laws and has taken a justifiable view in this matter - thus confirm the order passed by Ld CIT(A) in deleting the addition of ₹ 24.75 crores made u/s 68 of the Act. Since we have confirmed the order of Ld CIT(A) in deleting the addition made u/s 68 of the Act, the interest disallowance is also liable to be deleted. - Decided in favour of assessee.
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