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2021 (11) TMI 510 - AT - Income TaxAssessment u/s 153A - disallowing the interest - authorities below have held the loan creditors to be bogus and being engaged in the business of providing accommodation entries - HELD THAT:- No material was found during the search indicating therein that such transactions were not genuine. Moreover, we find that the assessee had already repaid the whole of the loan amount during the earlier year and present year. At the time of search i.e. on 31/08/2015, both accounts stood squared up as the assessee had already repaid the loans along with interest after deduction of tax at source. The assessee, during the assessment proceedings, specifically asked the Assessing Officer to provide opportunity of cross examination to the assessee. This is apparent from the reply filed by assessee against the show cause notice for disallowance of such interest. In its reply the assessee filed detailed submissions - In both years besides replying to each allegation of Assessing Officer, the assessee sought to cross examine the witnesses. In the present case, all documentary evidences, for the claim made by the assessee, are available with the authorities for which they have not made any adverse comments. The only reason for making and upholding the disallowance of the interest is the statement recorded by the officers of the Department and that too not by the Assessing Officer himself and that too which were not made available to the assessee for cross examination and therefore, these statements cannot be utilized against the assessee. If we ignore these statements, the rest of documentary evidences well support the claim of the assessee. - Decided in favour of assessee.
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