TMI Blog2014 (2) TMI 264X X X X Extracts X X X X X X X X Extracts X X X X ..... allowing opportunity to cross-examine the said person - Decided in favour of assessee. - ITA No.2850/Ahd/2012 - - - Dated:- 3-2-2014 - Shri G. C. Gupta,JJ. For the Petitioner : Shri Mehul Shah For the Respondent : Shri D. K. Mishra, Sr. DR ORDER This appeal of the assessee for the assessment year 2004-05 is directed against the order of the CIT(A)-I, Surat dated 10.10.2012. 2. The ground no.2 of the assessee is as under: "2. On the facts and in the circumstances of the case as well as law on the subject, the ld.CIT(A) has erred in confirming the action of the AO in making an addition of Rs.3,15,000/- on account of bogus share application money and charges." 3. The learned counsel for the assessee submitted that th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... He referred to the relevant portions of the assessment order and the appellate order passed by the learned CIT(A) in support of the case of the Revenue. He submitted that the case is based on the report of ADIT regarding hawala operator, Shri Narendra Shah who admitted his role in providing accommodation entries of shares to various beneficiaries and he has submitted a paper book containing names and addresses of 1314 persons who availed of such accommodation entries. He relied on the decision of the Hon'ble Delhi High Court in the case of Commissioner of Income-tax Vs Nova Promoters and Finlease (P) Ltd., 342 ITR 169 in support of the case of the Revenue. He relied on the orders of the AO and the CIT(A). 5. I have considered rival submis ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e basis of statement of a third party, the addition could not be made in the hands of the assessee without allowing opportunity to cross-examine the said person and in the absence of any corroborative evidence to establish the truthfulness of the statement of the third party. In this view of the matter, I am of the view that the addition made could not be sustained on account of bogus share application money and charges and accordingly, the ground no.2 of the assessee is allowed. 6. The ground nos.1 and 3 relate to issue of validity of assessment framed under section 147 of the Act by issuing notice under section 148 of the Act. In view of my decision deleting the addition on merits thereof, I hold that there is no necessity to adjudicate ..... X X X X Extracts X X X X X X X X Extracts X X X X
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