TMI Blog2021 (2) TMI 678X X X X Extracts X X X X X X X X Extracts X X X X ..... alance to make the investment in assessee company which was made through banking channel. No cash was found to have been deposited in the account of the Investor before making investment in assessee company and actual shares were also allotted to the Investor by the assessee company. Thus, documentary evidences on record have not been rebutted by the A.O. through any evidence or material on record. No independent enquiry has been made against these documentary evidences. Therefore, such documentary evidences clearly supports the explanation of assessee that genuine investment have been made in the assessee company. There is no adverse material available on record against the assessee so as to make the impugned addition and that no inv ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nts were recorded during the pre-search and post-search operation. From the material on record and statements of these persons, it was revealed that both have been providing entries to other companies. An FIR was also registered by the Economic Offence Wing of Delhi Police. It was also found that beneficiaries have provided commission for arranging entries. It was found that M/s Paryog India Pvt. Ltd. [ PIPL ] is controlled by these two persons i.e., Shri Mukesh Kumar and ShrLDeepak Agarwal who have provided accommodation entries, of ₹ 10,00,000/- to the assessee-company. The A.O. reopened the assessment by recording reasons. The assessee was asked to furnish the documents i.e., copy of ITR and bank statements of this party. The asses ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n summoned for recording their statement. The A.O. did not provide any opportunity to cross-examine to the statements of Shri Deepak Agarwal and Shri Mukesh Kumar which is the basis for making addition against the assessee, despite specific request is made by assessee. therefore, such statements cannot be read in evidence against the assessee. The assessee relied upon Judgment of the Hon ble Supreme Court in the case of Kishanchand Chellaram vs., CIT 125 ITR 713 (SC) and Judgment of Hon ble Delhi High Court in the case of CIT vs., SMC Share Broker Limited 288 ITR 345 (Del.). The assessee, therefore, prayed for reopening of the assessment may be quashed and addition on merit may be deleted. The Ld. CIT(A), however, did not accept the content ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ries. However, the details of the same have not been mentioned in the assessment order. Thus, the basis for reopening of the assessment and making addition against the assessee was on the basis of statement recorded by Investigation Wing of Shri Deepak Agarwal and Shri Mukesh Kumar implicating the assessee company of providing accommodation entries to the assessee company. The assessee made a specific request before A.O. to provide an opportunity to crossexamine the statements of Shri Deepak Agarwal and Shri Mukesh Kumar, but, it were denied by the A.O. vide his letter Dated 05.11.2018 PB-75-76. The A.O. in his letter has mentioned that primary onus is upon assessee to prove its case and under such circumstances by asking for cross-examinat ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rtment to justify the addition of ₹ 10 lakhs against the assessee. It may also be noted here that assessee has produced the above documentary evidences noted above which clearly shows that the Investor company has made investment in assessee company which is confirmed by the Investor in their confirmation and affidavit of the Director. The balance-sheet of the Investor shows that they have made investment in assessee company and they have sufficient balance to make the investment in assessee company which was made through banking channel. No cash was found to have been deposited in the account of the Investor before making investment in assessee company and actual shares were also allotted to the Investor by the assessee company. Thus ..... X X X X Extracts X X X X X X X X Extracts X X X X
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