9911796707
Advanced Search 
TMI Blog2018 (11) TMI 1723X X X X Extracts X X X X X X X X Extracts X X X X ..... essee was selected under scrutiny through CASS on the basis of information uploaded by the Investigation Wing that "Suspicious Transaction relating to Long Term Capital Gain on Sale of Shares" and statutory notices were issued and served in time upon the assessee. The assessee acted as Proprietor of M/s Century Industries and was engaged in the business of job work of machine parts. During the year, the assessee had claimed exemption of Rs. 32,05,601/- u/s. 10*38) of the Act on account of sale of securities. The assessment u/s. 143(3) of the Act was completed on 28.12.2016 at assessed income of Rs. 42,15,180/-. Against the assessment order, the Assessee appealed before the Ld. CIT(A) who vide his impugned order dated 29.11.2017 has dismisse ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... provided to the assessee and even no opportunity of cross examination him was provided, which was not considered by the Ld. CIT(A). He further draw my attention towards Assessment order page no. 12 para no. 6.3 and submitted that in the statement of Sh. Narendra Balasia, Director of M/s SMC Global Securities Ltd. through which assessee has opened DMAT account, nowhere the name of assessee is mentioned. AO has stated that an opportunity to cross examine Sh. Narendra Balasia in the office of DDIT (Inv.), Kolkata, at any time on or before 16.12.2016 is provided to assessee but no such communication was received from DDIT (Inv.), Kolkata as to on what date assessee should appear before him for cross examination. In fact the AO has tried to shif ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... at M/s Abhinandan Stock Broking Pvt. Ltd. by DDIT (Inv.)., Kolkata wherein he has admitted that he is engaged in providing bogus entry through penny stocks including the scrip of M/s Kappac Pharma Ltd. However, neither M/s Abhinandan Stock Broking Pvt. Ltd. nor Sh. Nikhil Jain is directly connected with the assessee as apparent from the documents of purchase and sale of shares. Thus relying on the statement of third party which is not directly connected with the assessee is illegal and bad in law. I further find from the assessment order para no. 6.2 at page no. 11 wherein it was stated that assessee has demanded an opportunity to cross examine Sh. Nikhil Jain vide its letter dated 07.12.2016 which was not provided to him, which is against ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... considered the statement of Vikrant Kayan and has held that since the impugned addition was made on the statement of Sh. Vikrant Kayan without providing any opportunity to the assessee to cross examine the same and Ld. CIT(A) has not considered the same plea, which is in violation of principle of natural justice and against the law laid down by the Hon'ble Supreme Court of India in the case of Andaman Timber vs. CIT decided in Civil Appeal No. 4228 of 2006. For the sake of convenience, I am reproducing the relevant portion of the ITAT, SMC, Delhi Bench vide its order dated 06.11.2018 passed in ITA No. 3510/Del/2018 (AY 2014-15) in the case of Smt. Jyoti Gupta vs. ITO as under:- "13. Merely on the strength of statement of third party i.e ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ind that rejection of this plea is totally untenable. The Tribunal has simply stated that cross-examination of the said dealers could not have brought out any material which would not be in possession of the appellant themselves to explain as to why their ex-factory prices remain static. It was not for the Tribunal to have guess work as to for what purposes the appellant wanted to cross-examine those dealers and what extraction the appellant wanted from them. As mentioned above, the appellant had contested the truthfulness of the statements of these two witnesses and wanted to discredit their testimony for which purpose it wanted to avail the opportunity of cross examination. That apart, the Adjudicating Authority simply relied upon the pri ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
