2013 (12) TMI 641

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....Ground no.2 is against the confirmation of addition of Rs.18,00,000 on account of unexplained credits. Briefly stated the facts of the case are that the assessee is a share broker earning income from brokerage as well as trading in shares. During the course of assessment proceedings, the Assessing Officer noted from bank reconciliation statement that two cheques issued in the name of M/s.Neelam Sales amounting to Rs.5,00,000 each were not cleared. The assessee was called upon to furnish the copy of account of M/s Neelam Sales. The assessee submitted before the A.O. that the name of M/s Neelam Sales was inadvertently recorded whereas the correct parties from whom these two cheques of Rs.5 lakh each were received were M/s.Ruchita Enterprises ....

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....r has noted that he recorded the statement of Shri Kailash Kabra on 15.05.2008 and Shri Devi Krishna Keni, a director of the assessee-company on 14.05.2008. It has further been observed in para 2 of the remand report that the assessee requested for cross-examination of Shri Kabra. The Assessing Officer tried to provide this opportunity, but Shri Kabra did not appear for cross-examination. The assessee's request for cross-examination once again could not be put into action by the Assessing Officer on the second occasion for non-appearance by Shri Kabra. On the basis of the statement of Shri Kailash Kabra recorded by the A.O. in remand proceedings, he came to hold that the addition of Rs.18 lakh was rightly made. A summary of the relevant por....

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....concerns, namely, Ruchita Enterprise and Antima Corporation were claimed to be operated by him for and on behalf of the assessee alone. The learned AR contended that the statement given by Shri Kabra is incorrect inasmuch as the bank accounts of these two concerns would demonstrate that there were several transactions conducted by Shri Kabra himself with other parties including his credit card payments and not of the assessee alone. Page no.40 of the Paper book is a copy of account of Deepak Corporation in the books of assessee by which various transactions have been recorded starting from 22.04.2003 up to 31.03.2004. Page no.41 of the Paper book is a copy of account of Ruchita Enterprises in the books of assessee by which various transacti....

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.... Corporation are in the range of 10% of the total bank transactions appearing in the bank accounts of these two concerns. Prima facie it appears that the statement given by Sh. Kabra before the AO is not matching with the material on record. In our considered opinion, there is a need to allow an opportunity to the assessee for cross examining Sh. Kabra, so that the correctness or otherwise of his statement could be ascertained. Equally, there are certain circumstances, which also prima facie belie the assessee's contention about the genuineness of the credit entries. At this stage, we do not propose to elaborately discuss the factors for and against the assessee. In our considered opinion the ends of justice would meet adequately if the ass....