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2016 (2) TMI 400 - AT - Income TaxAddition u/s 68 - CIT(A) deleted the addition - information on accommodations entries received from the Directorate of Income Tax (Investigation) - Held that:- AO in his remand report has admitted that he has heavily relied on the inputs of investigation wing which piece of evidence was not admittedly given to the assessee during the time of the assessment proceedings which amounts to violation of natural justice. If the AO was heavily relying on the Investigation Wing Report then he was duty-bound to have provided a copy of the same to the assessee so that he can rebut or bring evidences to prove his case. When out of 23 shareholders 19 shareholders’ identity, creditworthiness and genuineness were proved with the same set of documents, taking out 4 parties to make an addition of ₹ 70 lakhs out of ₹ 4.20 crores has been made u/s 68 of the Act cannot be sustained. The CIT (A) has also rightly taken note that no adverse comments were made by the AO on the merit of the case and did not cast any finding that whether the documents furnished by the assessee to prove identity, creditworthiness and genuineness of the 4 shareholders were bogus or fabricated. In the light of the above, we find that the ld. CIT (A) has rightly discussed a number of judicial precedents to delete the addition made by the AO. So, therefore, we do not find any infirmity in the order passed by the ld. CIT (A) - Decided against revenue
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