Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2018 (11) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2018 (11) TMI 939 - ITAT AHMEDABADUnexplained cash credit - addition merely on the basis of statement of third person recorded at the back of the assessee - Held that:- We find that the assessee has been able to demonstrate the receipt from the aforesaid creditor and has successfully demolished the stand of refusal taken by the creditor in this regard. Thus, the version of the creditor cannot be prima facie taken as reliable. The cross examination of the creditor demanded has not been granted. Therefore, no addition can be made merely on the basis of statement of third person recorded at the back of the assessee without opportunity of cross examination thereon. One course of action would be to remit the matter back to the AO for fresh examination on this aspect - the protracted litigation requires to be avoided in view of the tangible evidence placed on behalf of the assessee and lapse committed by Revenue. Therefore, the additions under s.68 requires to be deleted. We direct the AO to do so. Addition of transaction charges of NMCX - Held that:- The claim of the assessee that transaction charges paid to National Multi Commodity Exchange of India (NMCE) requires to be allowed as ordinary business expenditure in the course of commodity trading carries good deal of force. The expense incurred is clearly in the course of commodity business and thus, the assessee is entitled to claim such expenditure as ‘business expenditure’. The action of the Revenue authorities is accordingly set aside and impugned transaction charges is allowed.
|