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2018 (11) TMI 1353 - AT - Income TaxBogus long term capital gain - addition u/s 68 - claim of exemption u/s 10(38) rejected - addition on the strength of statement of third party - non providing cross examination - denial of natural justice - Held that:- The transactions have been done by BSE through proper banking channels evidenced by supporting documentary evidences. Moreover, securities transactions tax has also been paid. Merely on the strength of statement of third party i.e. Shri Vikrant Kayan cannot justify the impugned additions. Moreso, when specific request was made by the assessee for allowing cross examination was denied by the Assessing Officer. The first appellate authority also did not consider it fit to allow cross-examination. This is in gross violation of the principles of natural justice and against the ratio laid down in the case of Andaman Timber Vs. CIT 2015 (10) TMI 442 - SUPREME COURT) - no merit in the impugned additions. The findings of the CIT(A) are accordingly set aside. The Assessing Officer is directed to allow the claim of exemption u/s 10(38) of the Act.- decided in favour of assessee.
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