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2019 (9) TMI 603 - AT - Income TaxAddition u/s. 68 - unsecured loans - assessee has obtained accommodation entries for increase in share capital along with premium - disallowance of commission expenses relating to said unsecured loans - HELD THAT:- Assessee has discharged its initial onus of proving the identity, genuineness and creditworthiness of the creditors by providing all necessary details and thus the assessee has discharged identity, genuineness and creditworthiness of the parties. AO has not controverted the evidences furnished by the assessee. No further enquiries have been made by the Assessing Officer except relying on the statements of PKJ and the investigation report. Even the statements were not provided to the assessee for its rebuttal. Addition made u/s. 68 which is purely based on the statements recorded from PKJ and without any enquiry is liable to be deleted. Further, since the statement of PKJ on which much reliance was placed to treat the loan transaction as non-genuine was not provided to the assessee for rebuttal, it is in violation of principles of natural justice and further we observe that no sort of enquiries were made by the AO to disprove the evidences furnished by the assessee. Addition made u/s. 68 cannot be sustained. We direct the AO to delete the addition made u/s. 68 of the Act. - Decided in favour of assessee.
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