Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2020 (2) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2020 (2) TMI 1042 - AT - Income TaxUndisclosed income - violation of principle of natural justice - not providing opportunity to assessee of cross-examining M/s Tinka Stone, therefore the addition of INR 10 Lacs as made by AO should be deleted - HELD THAT:- Set-aside proceedings and the matter was earlier set-aside by the Tribunal with a specific direction to provide cross-examination of M/s Tinka Stones to the assessee company. Both the lower authorities having acknowledged this fact have failed to follow the specific direction and thus, it is not just a case of judicial indiscipline but also a violation of principle of natural justice where liability has been fastened on the assessee merely based on confirmation filed by a concern without providing an opportunity of cross examination. It is not a case where the whereabouts of M/s Tinka Stones was not known to the Revenue as apparent from commission of enquiry conducted through ACIT Mumbai on such entity or anything on record to suggest that there was any practical difficulty in arranging the cross-examination. On merits, we find that the assessee has already written off the said amount in its financial statements for the financial year ended 31.03.2019 and has offered the amount to tax in its return of income filed for AY 2019-20. Therefore, where the undisputed facts are that the amount of advance written off has already been offered to tax, the same amount cannot be brought to tax again. Addition so made is directed to be deleted and the sole ground taken by the assessee is allowed.
|