2013 (4) TMI 571 - DELHI HIGH COURT

Addition on sham and bogus transactions - Held that:- The assessee during the course of assessment proceedings has filed confirmation letters from the companies, their PAN number, copy of bank statements, affidavits and balance sheet. Thereafter AO had asked the assessee to produce the said Directors/ parties.

Assessee expressed its inability to produce them but AO did not consequent thereto conduct any inquiry and closed the proceedings. This is a case where the Assessing Officer has failed to conduct necessary inquiry, verification and deal with the matter in depth specially after the affidavit/confirmation along with the bank statements etc. were filed. Thus in the absence of these inquiries and non-verification of the details at the time of assessment proceedings, the factual findings recorded by the AO were incomplete and sparse.