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2021 (11) TMI 567 - AT - Income TaxAssessment u/s 153A - addition on account of interest paid by the assessee on unsecured loans from Neil Industries Pvt. Ltd. - disallowing the interest is that the authorities below have held the loan creditor to be bogus and being engaged in the business of providing accommodation entries - HELD THAT:- Though the Assessing Officer did issue summons to the witnesses to provide the assessee opportunity to cross examine the witnesses but witnesses did not appear whereas the counsel of the assessee was present for cross examination. The Assessing Officer without making further efforts and without ensuring the presence of witnesses, proceeded to disallow the interest ignoring all documentary evidences filed by assessee as well as by loan creditor directly. When this issue was taken before learned CIT(A), he held that there was no need to provide opportunity to the assessee for cross examination 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.
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