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2023 (7) TMI 1199 - AT - Income TaxAddition on the basis of dumb/rough documents seized - Unsecured advances obtained - search and seizure operation u/s 132 - HELD THAT - Addition has been made on the basis of presumptions and assumptions that Shri Mahendra Sethia is engaged in the business of providing accommodation entries of share capital or sale of investment without bringing any corroborative material on record - since the document found during the course of search is not signed by anyone from the assessee company it is nothing less than a dumb documents which can not be basis of addition alone. The case of the assessee finds support from the several decisions as stated hereinabove. Accordingly on this account the addition cannot be sustained and deserve to be deleted. Addition has been made on the basis of statement of Gopal Agarwal who nowhere named the assessee to be beneficiaries of accommodation entries and also no cross examination was ever provided to the assessee of Mr Gopal Agarwal and therefore as has been held in the case of Andaman Timber Industries 2015 (10) TMI 442 - SUPREME COURT and in case of H R Mehta 2016 (7) TMI 273 - BOMBAY HIGH COURT the addition made with opportunity of cross examination is bad in law. We have also perused the annual audited accounts of the assessee during the year and observe that there has not been any issue of equity share capital or raising of fresh loans. We observe that that whatever little unsecured loans were raised were from the relatives . We direct the AO to delete the addition. Appeal of the assessee is allowed.
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