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2019 (12) TMI 745 - AT - Income TaxAddition u/s 68 - unexplained cash credit - loans received by the assessee were not genuine - HELD THAT:- Order passed by the Ld.CIT(A) is in gross violation of the principles of natural justice being based on material collected at the back of the assessee. The entire case of the CIT(A) for holding the credits ingenuine rests on information derived from the bank statements of the creditors, information derived from internet about the creditors, and on the basis of findings recorded by the ITAT in case of one of the creditors. The bank statements of the creditors admittedly were additional evidences filed by the assessee showing cheque issued for making loans to the assessee. As rightly pointed out by assessee, CIT(A) had not admitted the evidences for adjudication. From the bank statements, we find, the Ld.CIT(A) collected information that there were amounts deposited before the issuance of cheques to the assessee in all cases. Further the Ld.CIT(A) extracted information from the internet that the name of one of the depositor companies had been struck off from the register of companies. She also had information in her possession that the ITAT has held in case of one depositor company that it was engaged in providing accommodation entry only. Reading all the aforesaid information together, the Ld.CIT(A) held that the loans received by the assessee were not genuine. Undeniably, the aforesaid information was not confronted to the assessee. Even the Ld. DR has admitted to the said fact and we have not been able to find anything in the order of the CIT(A) showing that the said information was confronted to the assessee. Clearly, the impugned order has been passed in gross violation of the principles of natural justice, that none should be condemned unheard. Restore the matter back to the CIT(A) for adjudication afresh. The additional evidences filed by the assessee, being imperative to establish the claim of the assessee that the transaction was genuine , are directed to be admitted for adjudication. Appeal filed by the assessee is allowed for statistical purposes. The Ld.CIT(A) is further directed to obtain report from the AO on the evidences as per the provisions of Rule 46A of the Income Tax Rules,1962 and after confronting all material to the assessee, to decide the issue in accordance with law - Appeal filed by the assessee is allowed for statistical purposes.
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