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2020 (2) TMI 1343 - AT - Income TaxAddition u/s 68 - accommodation entries in various forms like bogus unsecured loans, bogus share capital, bogus sales and purchase etc. and charged commission thereon at the rate of 0.10% to 0.30% depending on the nature of entry - HELD THAT:- AO except confronting the assessee with some details obtained from Shri Rahul Jhunjhunwala and his company, not able to produce any other material. AO should have granted an opportunity to cross-examine Shri Rahul Jhunjhunwala, Shri Satish Saraf or any other concerned whose statements he was relying upon, because all these statements were not recorded by the AO during the course of assessment proceedings. These were recorded by some other authorities during some other investigations. This can be used only as an information for initiating action against the assessee. They cannot be treated as gospel truth against the assessee. Therefore, if these statements are excluded on the strength of Hon’ble Supreme Court judgment cited in the case of Andaman Timber Industries Vs. Comm. Of Central Excise, Kolkata, [2015 (10) TMI 442 - SUPREME COURT] then nothing remained against the assessee to doubt the alleged commission expenses. Therefore, in view of the above facts and circumstances, we allow this ground of appeal, and delete addition. - Decided in favour of assessee.
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