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2017 (12) TMI 1529 - AT - Income TaxAddition on account of commission expenses claimed - No opportunity of cross examination - Held that:- AO in the instant case has no evidence other than the statement of Manoj Sarda that would prove that the commission entries were merely paper entries, On the other hand the assessee has produced many documentary evidences to prove the genuineness of the commission transaction. The commission agents too have confirmed the transactions, which have been duly accounted for in their books of accounts. Therefore, the action of the AO in ignoring all the strong material evidence brought on record and merely relying on the statement of a third party (that too a statement which is contradicting the party's own written confirmation) is not justified. The opportunity of cross examination given was inadequate and illusory. Since, inadequate opportunity was given to the assessee, the assessment was vitiated by violation of principles of natural justice and therefore the statement of Mr. Sarda does not constitute valid evidence against the assessee. After considering the facts in totality, we are of the view that the addition made by the lower authorities is not sustainable. Hence the ground of appeal of the assessee is allowed.
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