TMI Blog2023 (9) TMI 259X X X X Extracts X X X X X X X X Extracts X X X X ..... f the evidence produced. These documents were filed by the Director Shri Tamal Roy. Even, during the course of survey of GCSL, there was no other evidence found which would support the statement of the Director. ITAT correctly held we do not agree with the sweeping allegation of the Hon ble Assessing Officer that Transactions were accommodation entries We note that there is no written evidence, against the assessee except statement of Shri Tammal Roy. The statement of third party cannot be used against the assessee without giving opportunities of cross examination - inspite of specific request made by the assessee, opportunity of cross examination was not provided to the assessee, hence addition made by the assessing officer relying ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he order of the Hon ble ITAT is ex-facie perverse because the Hon'ble ITAT held we do not agree with the sweeping allegation of the Hon ble Assessing Officer that Transactions were accommodation entries despite of the facts that during the course of survey proceedings in the case of the director of the said company Shri Tamal Roy in his statement recorded on oath u/s.131 of the Income Tax Act, 1961 has accepted that he was engaged in providing accommodation entries and not engaged in the real business and have never retracted from his statement? (b) Whether in the facts and circumstances of the case and in law, the Hon ble ITAT has erred in holding that the statement was not based on any cogent evidence to back such high voltage ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... urchases/advances to various persons. Accordingly, on the basis of such information, the unsecured loans were treated as bogus and added to the total income of the assessee on account of disallowance of deduction. On an Appeal being filed by the respondent, the Commissioner of Income Tax (Appeals) (for short the CIT (Appeals) ) found that it was a fact that the actual loan amount taken from Gujarat Computer and Software Limited (for short the GCSL ) by the appellant during the year was Rs. 12,14,13,015/- and not Rs. 13,75,13,015/-. The CIT (Appeals) held that the Assessing Officer had made additions considering the loan amount as non-genuine only on the basis of the statement of one Shree Tamal Roy, Director of GCSL recorded during the co ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ess and copy of audit report of creditor. All these documents were also filed by Shri Tammal Roy, director of the company before the assessing officer along with letter dated 07.10.2017, which confirm the contention of the assessees. The ld Counsel contended that Rs. 1.61 Crore is the opening balance and Rs. 12,14,13,015/- is the correct amount of loan taken during the year. The assessing officer passed the order u/s 154 of the Act on bringing this mistake to notice. The ld Counsel argued that the survey upon GCSL was conducted for the transactions entered into with HAH Global Enterprise Services. Most of the statement was recorded during the survey on this issue only, therefore, the transaction related to the assessee was not the subject ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 07.10.2017. These facts clearly prove that in spite of specific request made by the assessee, opportunity of cross examination was not provided to the assessee, hence addition made by the assessing officer relying upon such statement is clearly in violation of the principle of natural justice. We note that confirmation from the creditor was filed before the assessing officer, along with copy of ITR, copy of bank account and audit report of the auditor. Survey ws 133A of the Act was conducted by the Department on the creditor, which prove identity beyond doubt as state ment of the director was recorded twice. 24. Regarding creditworthiness of the creditor, the ld Counsel stated that creditor had turnover in A.Y. 2011-12 of Rs. 8.56 Cro ..... X X X X Extracts X X X X X X X X Extracts X X X X
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