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2022 (2) TMI 436 - AT - Income TaxAddition u/s 153A - unaccounted commission income received by the assessee from Rockland group for providing accommodation entries - HELD THAT:- No addition on account of commission allegedly received by the assessee can be made. In the case of PCIT vs. Anand Kumar Jain (HUF) [2021 (3) TMI 8 - DELHI HIGH COURT] wherein the Hon’ble Court held that the statement recorded in search cannot be regarded as the incriminating document for assessment u/s 153A unless opportunity of cross examination of the witness is provided to the assessee. Declaration made by Mr. Prabhat Kumar Srivastava, the Director in his affidavit denying payment of any fees/ commission to the assessee has neither been considered nor specifically rejected by the AO by recording any reasons. Nothing has been brought on record to disbelieve the statement of the Director, Mr. Prabhat Kumar Srivastava. In fact his statement remained uncontroverted by the AO. CIT(A) has recorded a categorical finding that no adverse inference can reasonably be drawn from the entry against the word “Ashwani” appearing in seized documents. It has been explained by the assessee before the AO and the Ld. CIT(A) that such references relate to payment of remuneration to the assessee and not to any commission. Even where there is mention of 2 to 3% commission in seized documents, the name of the assessee does not appear at all therein. In fact we notice that the AO in his remand report has categorically admitted that the statements of Sri Anil Agarwal, Sri Vipul Jain and Sri Mahavir Jain do not mention the name of the assessee being a party to the accommodation entries to the Rockland Group. No adverse inference can be drawn against the assessee regarding receipt of commission by him. The addition is based on presumptions alone without any corroborative evidence brought on record in support thereof. - Decided against revenue.
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