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2022 (11) TMI 1248 - ITAT KOLKATAAssessment u/s 143(3) - accommodation entries provider - transaction between the appellant and other related concerns as accommodation entry and treating the appellant as alleged accommodation entry provider - as argued assessee is not an accommodation entry provider AND no opportunity of cross examination was provided regarding the alleged credible information received by ld. AO - HELD THAT:- Complete details of the source of the funds received during the year as well as the amounts transferred to other companies has been filed by the assessee. Revenue authorities have failed to find any defect in such details. In the past for AY 2013-14 assessee’s case was assessed u/s 143(3) of the Act and the assessee has not been held to be entry provider but has been assessed to be engaged in business of share investment. This plea of ld. D/R that most of the companies are having meagre income and no source of funds is also not correct as in the case of P G Industries Ltd., returned income is 1.14 Cr. and in case of Priceless Overseas Ltd., returned income is 59.97 lakh. It is also not in dispute that the assessee has requested for cross examination but no such opportunity was provided to the assessee to cross examine Mr. Mahendra Sethia who claimed to have been managing the assessee company as an accommodation entry provider. And not providing of such opportunity of cross examination renders the assessment proceedings as invalid and bad in law as held in the case of Andaman Timber Industries v. CCE [2015 (10) TMI 442 - SUPREME COURT] Therefore since the assessee has explained the transactions carried out during the year in the bank account held in Vijaya Bank and the complete details of the deposits and withdrawal and the source and the documentary evidences in support thereof, the transactions, in my view are carried out in the regular course of business and by no stretch up imagination, the assessee company can be held as an accommodation entry provider/shell company. Therefore, set aside the finding of ld. CIT(A) and delete the addition of commission income - Decided in favour of assessee.
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