TaxTMI 
TaxTMI 
2013 (9) TMI 1119
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....) - 3, Mumbai, erred in i. Confirming the addition of Rs. 30,00,000/- as unexplained cash credits u/s 68, ignoring the specific directions of the Hon'ble ITAT in ITA No. 6270-6272 dated 11th September 2009. ii. Confirming the addition of Rs. 31,250/- as interest on the so-called bogus loans/unexplained cash credits." 3. The original assessment was completed u/s 143(3) on 24.1.2000 at the total assessed income of Rs. 2,35,505/-. Subsequently the assessment was reopened by issuing a notice u/s 148 dated 31.3.2004 on the reason that undisclosed income of Rs. 30,00,000/- shown as loan and interest claimed on the alleged loan escaped assessment. In fact intimation was received by the AO from DDIT investigation Unit-(viii)(4), Mumbai aft....
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....dings therefore the AO completed the reassessment by making the addition of Rs. 30,00,000/- as hawala loan and interest on the same. The assessee challenged the action of the AO and brought the matter before this Tribunal. The assessee contended that the AO has made the addition without giving an opportunity to the assessee to cross-examine of Mr. Surendra Khandhar. This Tribunal directed the AO to decide the issue afresh after providing opportunity of cross-examination. Thereafter the assessment in this case was made afresh. The AO tried to locate Mr. Surendra Khandhar however, he failed to serve notice on him or to trace him out for allowing crossexamination to the assessee. The Assessing Officer repeated all the additions made originally....
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....e of the appeal on the short point of repayment of loan. The Ld. DR has submitted that the claim of repayment of loans requires verification and if the assessee establishes that the loan in question have been repaid then the issue may be decided accordingly. 6. We have considered the rival submissions and carefully perused the relevant material on record. In the earlier round of litigation this Tribunal has remanded the matter to the record of the Assessing Officer vide order dated 11.9.2009 in para 5 and 5.1 as under: "5. We have heard the rival submissions and considered them carefully. As mentioned above, the assessments were completed originally which were set aside by the Tribunal with a direction to allow cross examination....
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.... the assessee. Accordingly, we set aside the orders of the lower authorities and restore the matter to the file of the AO to pass a fresh order as per out above observations." 7. It is clear from the order of this Tribunal that the addition made on the basis of the statement of Mr. Surendra Khandhar without giving an opportunity of cross-examination was held to be not proper and accordingly it was observed that the statement of Mr. Surendra Khandhar cannot be used against the assessee. The AO was directed to decide the issue on merits after affording an opportunity to the assessee to file necessary details in respect of respective loans taken by the assessee. We note that in the assessment order passed in pursuant to the directions of....